FOR IMMEDIATE RELEASE June 10, 2008 Reference: Dion Carlo Cerrafon, President NEW Contact numbers: 09179616324 09235037264 Kabataang Pinoy projects that if the average tuition rate increase of 10 to 12 percent continues for the next two years, the national average tuition per unit would reach P548.30 by 2010. By then, average tuition in NCR schools would already surpass the P1,000 mark at P1,072.76 per unit. Bigger tuition hikes greet school opening Tuition rate doubled under GMA, youth group says Youth group Kabataang Pinoy today revealed that tuition rate has already doubled in eight years since Gloria Macapagal-Arroyo was catapulted to power. "The government's recent claim about a tuition hike freeze this year is turning out to be mainly for public consumption. As schools open this week, more tertiary schools had actually applied for tuition hike and, to top it all, tuition rate is now at its highest level since Mrs. Arroyo assumed office in 2001," Kabataang Pinoy President Dion Carlo Cerrafon said. In the current school year, 378 out of 1,800 private higher education institution have applied for tuition increase. The national average tuition increase is 9.93 percent or P38.92; the current rate per unit is P437.10. The number of schools that increased tuition has even gone up from the Commission on Higher Education's (CHED) May 15 report, which showed only 364 schools hiking their fees this year. In the National Capital Region, the average tuition is pegged at P855.20 per unit, with 90 out of 309 schools increasing tuition on an average of 8.51 percent from last school year. This is higher compared to last year's figures of 88 schools which increased their tuition on an average of 7.66 percent. A study made by Kabataang Pinoy on the rising cost of tertiary education revealed that since Gloria Macapagal-Arroyo became president, the national average tuition has increased by as much as 69.81 percent. The NCR average rate, on the other hand, has swelled by a whopping 118.53 percent. In school year 2000-2001, the average tuition at the national level and in NCR was only P257.41 and P391.34 per unit, respectively. Based on CHED's records on tuition increases, tuition was steadily increasing by an average of 10 to 12 percent in the last eight years. Kabataang Pinoy projects that if the average tuition rate increase of 10 to 12 percent continues for the next two years, the national average tuition per unit would reach P548.30 by 2010. By then, average tuition in NCR schools would already surpass the P1,000 mark at P1,072.76 per unit. But Cerrafon said these figures only speak of the average tuition rate per unit in private schools. Most exclusive schools charge tuition five times higher than the average. Rough estimates of annual tuition in some exclusive private schools peg total tuition expenses at P200,000 in the University of Asia and the Pacific, P150,000 to P160,000 in De La Salle University and College of Saint Benilde and, P120,000 to P130,000 in Ateneo de Manila University. Schools like Mapua Institute of Technology, on the other hand, adopt a four-semester scheme. In its Makati campus alone, an Information Technology student (IT) has to pay P37,986 per term for 15 units or P151,944 per year (four semesters/quarters). "This largely explains why some business tycoons like Lucio Tan and the Yuchengcos have already ventured into tertiary education. Clearly, the relentless hikes in tuition and other fees have earned for private school owners millions of profits over the last two decades," Cerrafon said. Among the stockholders of the country's higher education institutions are big names in the local business community. "While the quality of education in tertiary education is declining, the Education Act of 1982 allows them to arbitrarily increase tuition to guarantee huge profits for their owners," he added. Emilio Yap, chair of the Philippine Trust Co., publisher of Manila Bulletin and owner of Manila Hotel controls 55 percent of CEU's stocks. Lucio Tan started investing in the UE in 1999. Tan is considered as the country's richest businessman with a personal net worth of $1.5 billion. He owns Fortune Tobacco, Asia Breweries, Allied Bank and Philippine Airlines. The Yuchengco Group of Companies bought the MIT in 1999 from the family of Don Tomas Mapua. The Yuchengco Group of Companies owns the Malayan Insurance, Great Pacific Assurance Life Corp. and Rizal Commercial Banking Corporation. Another business tycoon with investments in private tertiary education is Henry Sy. Sy is a partner of the IBM in the Asia Pacific College. He is the chairman of the SM Group of Companies with revenues amounting to $1.7 billion. Sy is considered one of Asia's wealthiest persons. John Gokongwei donated P200 million to Ateneo de Manila's School of Management. The family also gave financial support to the University of San Carlos in Cebu, Xavier University in Cagayan de Oro City, De La Salle University, Sacred Heart School and Immaculate Conception Academy. "Unless the government starts to flex its muscles on these increases, we will be seeing a higher drop-out rate and bigger number of out-of-school youth in the next five years," Cerrafon pointed out.