Education Systems

The Education Act of 1982 has been applied or used to govern both formal and non-formal systems in public and
private schools in all levels of the educational system (B.P. Blg. 232, Sec. 2). It has been amended to conform with the
trifocal system of education. B.P. Blg. No. 232 declares that "the State recognizes that formal education, or the school
system, is society's primary learning system, and therefore the main instrument for the achievement of the country's
educational goals and objectives" (id., Sec. 19). It defines formal education as "the hierarchically structured and
chronologically graded learning organized and provided by the formal school system and for which certification is
required in order for the learner to progress through the grades or move to higher levels" (id., Sec. 20). In addition,
formal education shall correspond to the following levels:

a. Elementary Education the first stage of compulsory, formal education primarily concerned with providing basic
education and usually corresponding to six or seven grades, excluding pre-school programs;

b. Secondary Education the state of formal education following the elementary level concerned primarily with
continuing basic education and expanding it to include the learning of employable gainful skills, usually corresponding
to four years of high school; and

c. Tertiary Education the post secondary schooling or higher education leading to a diploma or degree in a specific
profession or discipline (id).

The objectives of the three levels of education under the Education Act of 1982 are the following:

1. Objectives of Elementary Education. Sec. 21 thereof enumerates the objectives of elementary education as follows:
(a) to provide knowledge and develop the skills, attitudes, and values essential to personal development and necessary
for living in and contributing to a developing and changing social milieu; (b) to provide learning experiences which
increase the children's awareness of and responsiveness to the changes in and just demands of society and to prepare
them for constructive and effective involvement; (c) to promote and intensify the children's knowledge of, identification
with, and love for the nation and the people to which they belong; and (d) to promote work experiences which develop
the children's orientation to the world of work and creativity, and prepare themselves to engage in honest and gainful
work.

2. Objectives of Secondary Education. Sec. 22 thereof states the objectives of secondary education, as follows: (a) to
continue to promote the objectives of elementary education; and (b) to discover and enhance the different aptitudes
and interests of the students so as to equip them with skills for productive endeavors and/or to prepare them for
tertiary schooling.

3. Objectives of Tertiary Education. Sec. 23 thereof provides the objectives of tertiary education as follows: (a) to
provide a general education program that will promote national identity, cultural consciousness, moral integrity, and
spiritual vigor; (b) to train the nation's manpower in the skills required for national development; (c) to develop the
professions that will provide leadership for the nation; and (d) to advance knowledge through research work and apply
new knowledge for improving the quality of human life and responding effectively to changing societal needs and
conditions.

Non-education and Specialized Educational Services. B.P. Blg. 232 declares that the "State further recognizes its
responsibility to provide, within the context of the formal education system, services to meet special needs of certain
clienteles" (id., Sec. 24). Enumerated in the same section are the specific types of non-education and specialized
education services as follows:

a. "Work Education" or "Practical Arts" is a basic education program which aims to develop the right attitudes
towards work; "Technical-vocational education" is a post-secondary but non-degree program that grants a one-, two-, or
three- year certificate in preparation for a group of middle-level occupations.
b. "Special Education" is the education of persons who are physically, mentally, emotionally, socially, or culturally
different from the so-called "normal" individuals that they require modification of school practices/services to develop
themselves to their maximum capacity; and

c. "Non-formal Education" is any organized school-based educational activity undertaken by the Ministry of
Education, Culture and Sports and other agencies aimed at attaining specific learning objectives for a particular
clientele, especially the illiterates and out-of-school youth and adults, distinct from and outside the regular offerings
of a formal school system.

Moreover, the objectives of non-formal education are as follows: (1) to eradicate illiteracy and raise the level of functional literacy
of the population; (2) to provide unemployed and underemployed youth and adults with appropriate vocational/ technical skills to enable them to
become more productive and effective citizens; and (3) to develop among the clientele of non- formal education proper values and attitudes
necessary for personal, community and national development.

Establishment of Private Schools

Sec. 26 of the Education Act of 1982 defines schools, public schools, and private schools, as follows: (1) "Schools" are
duly established institutions of learning or educational institutions; (2) "Public Schools" are educational institutions established and
administered by the government; and (3) "Private Schools" are educational institutions maintained and administered by private
individuals or groups. Under the trifocal system of education, the schools or educational institutions are further classified into three:
basic, technical-vocational, and higher education. For this part, schools in the country are either public or private. The government
recognizes and adopts formal education as its main instrument to attain national education goals and objectives. This formal system
of education has two equally important sub-systems: (a) the private school system, and (b) the public school system (See 2008
MORPHE, Sec. 6, Art. II).

Public schools are established by the government and are composed of elementary, secondary, tertiary, and other government
schools subsidized by the government. They provide free basic education (elementary and high schools). Students can also avail
of free public higher education in (a) state universities and colleges (SUCs), (b) local universities and colleges (LUCs), and
(c) other national and local government funded higher education institutions. SUCs are creations of laws enacted by the
national legislature; LUCs, community colleges, and locally funded schools are established by ordinances enacted by the
local legislature. Admissions to these schools are difficult due to their limited resources. Some of them provide formal
education, from undergraduate (pre-baccalaureate and baccalaureate) to graduate (master's and doctoral) level.
On the other hand, private schools are established in accordance with the Constitution and existing laws, subject to certain
limitations on ownership, as well as control and administration. Sec. 4(2) of Art. XIV of the 1987 Constitution provides that
"educational institutions, other than those established by religious groups and mission boards, shall be owned solely by citizens of
the Philippines or corporations or associations at least sixty per centum of the capital of which is owned by such citizens."
Educational institutions, except for those established by religious groups and mission boards, are among the institutions that
require sole Filipino ownership.

Although the Constitution allows forty percent (40%) of foreign capitalization in case of corporations, it prohibits foreign
citizens from holding positions that allow them to exercise control and administration of schools and the establishment
of schools exclusively for aliens. However, it does not prohibit the establishment of schools in the Philippines solely for
foreign diplomatic personnel and their dependents, and unless otherwise prohibited by law, for foreign temporary
residents. This case is governed by the principles of international law as the members of the foreign diplomatic
community are accorded protection even in their foreign assignments. This also makes the constitutional provision
prohibiting schools to accept more than one-third of alien enrollment inapplicable.

Sec. 25 of B.P. Blg. 232 requires that any private school to be established in the country be incorporated in accordance
with provisions of the Corporation Code of the Philippines (B.P. Blg. 68). Signed into law on Aug. 25, 1994, R.A. No.
7798, amended Sec. 25, Chapter 3 of the Education Act of 1982 as regards the establishment of private schools, thus:

SEC. 25. Establishment of Schools. All schools shall be established in accordance with law. The establishment of new
national schools and the conversion of existing schools from elementary to national secondary schools or from
secondary to national secondary or tertiary schools shall be by law: Provided, That any private school proposed to be
established must incorporate as either a non-stock or a stock educational corporation in accordance with the provisions
of the Corporation Code of the Philippines. This requirement to incorporate may be waived in the case of family-
administered preschool institutions.

Provided, That the minimum paid-up capital for stock educational institutions for those engaged in elementary
education shall not be less than One million pesos (1,000,000.00); not less than Two million five hundred thousand
pesos (P2,500,000.00) for those offering both elementary and secondary education; and not less than five million pesos
(P5,000,000.00) for those offering elementary, secondary and tertiary and postgraduate courses, except existing
educational institutions organized as stock corporations which may retain their original capitalization.

Existing educational institutions organized as stock corporations may automatically apply for renewal of their corporate
existence when the original period is about to expire.

Provided, finally, That stock educational institutions may be allowed only in capital-intensive courses of study as may be
determined by the Department of Education, Culture and Sports, the Commission on Higher Education, and the
Department of Science and Technology, as the case may be.

Any school that is established or organized as a stock corporation shall be ineligible for any form of government subsidy,
incentive, or assistance, except those given to individual students and teachers in the form of scholarships, student loans,
or other forms of subsidy as already mandated under existing laws. Government assistance to non-stock schools for
educational programs shall be used exclusively for that purpose.

Today, private education institutions may be incorporated as stock institutions subject to compliance with the
capitalization requirements under the law. R.A. No. 7798 also provides that stock educational institutions may be
allowed only in espital intensive courses. This case of capital intensive courses is evaluated and determined by the
DepEd, CHED, and DOST, as the case may be. Previously, schools were required to incorporate as non-stock or non-profit
educational corporations because the government intended to prevent the operation of schools as business entities.
Now, an educational institution may be established either as non-stock or stock corporation. In addition, an educational
institution which has been organized as a stock corporation may be converted into a non-profit foundation (R.A. No.
6055, Sec. 1) Recognition of Schools. Any person or group of persons who intends to establish a private school must
secure a permit from the government agency concerned, ie, DepEd, TESDA, or CHED, as the case may be. Sec. 27 of B.P.
Blg. 232 provides that the "educational operations of schools shall be subject to their prior authorization of the
government, and shall be affected by recognition." It also states that the recognition of educational programs and/or
operations of government-operated schools, whether local, regional, or national, recognition, are granted
simultaneously with the establishment. The Ministry of Education, Culture and Sports prescribes the rules and
regulations governing recognition of both public and private basic education, and defines therein who are qualified to
apply, providing for a permit system. stating the conditions for the grant of recognition and for its cancellation and
withdrawal, and providing for related matters (B.P. Blg. 232, Sec. 27).

For higher education, the pertinent rules for recognition are governed by the Manual of Regulations for Private Higher
Education of 2008 which was approved by CHED on July 31, 2008, pursuant to the provision of the 1987 Constitution,
Act No. 2706 (An Act Making the Inspection and Recognition of Private Schools and Colleges Obligatory for the Secretary
of Public Instructions and For Other Purposes) as amended by Act No. 3075, Commonwealth Act No. 180, B.P. Blg. 232,
R.A. No. 7722, and other applicable legislations.

Sec. 28 of B.P. Blg. 232 enumerates the effects of the issuance of a certificate of recognition to a school: (1) it transforms
the temporary permit to a permanent authority to operate; (2) it entitles the school or college to give the students who
have completed the course for which recognition is granted, a certificate, title or diploma; and (3) it entitles the students
who have graduated from said recognized course or courses to all the benefits and privileges enjoyed by graduates in
similar courses of studies in all schools recognized by the government. It stresses that "operation of schools and
educational programs without authorization, and/or operation thereof in violation of the terms of recognition, are
hereby declared punishable violations, subject to the penalties provided in this Act." Voluntary Accreditation. Sec. 29
thereof provides that the government encourages programs of voluntary accreditation for an institution which aspires to
meet standards of quality over and above the minimum required for State recognition.

Accreditation is defined as "a voluntary activity or process leading to the issuance of a certificate of accredited status by
an organized body of educational institutions attesting to the quality or standards of a higher education institution or
any of its educational programs, and to the effectiveness of the management and operations of the institution offering
the program, as exceeding the minimum standards or criteria for government recognition as provided for in this
Manual" (MORPHE, Sec. 5).

Fr. Joaquin G. Bernas, S.J. questioned CHED's power "to prescribe the governing policies, guidelines, and requirements
on accreditation, including such details it may deem essential such as standardized accreditation fees, the composition
of accreditors, and other matters internal to the associations." He argued that as stated in the Manual, "accreditation
shall be 'voluntary in nature." He briefly discussed the history of accreditation by citing Fr. Antonio Samson, S.J.,
president of Ateneo de Davao University and the Philippine Accrediting Association of Schools, Colleges and Universities,
thus:

Originally, in 1957, the Philippine Accrediting Association of Schools, Colleges and Universities (PAASCU) was founded as
a private cooperative effort among its dozen or so founding member-schools to improve the quality of education with
the help of voluntary accreditation. In time, the government, through its education agencies-Department of Education,
Ministry of Education, Culture and Sports (MBCS), Department of Education, Culture and Sports (DECS), and CHED-
recognized the valuable work of PAASCU for improving the quality of education and extended to schools accredited by
PAASCU various privileges and grants, including levels of curricular and administrative deregulation to autonomous
status. This has given PAASCU a well- respected status in the country, as well as in the Asia-Pacific region and the world.
After PAASCU, other private accrediting agencies were also established..." (Philippine Daily Inquirer [PDI), Dec. 20, 2009).

Fr. Bernas strongly asserted that B.P. Blg. 232 and its implementing rules, as well as R.A. No. 7722 which created CHED,
did not give CHED the power to issue rules and regulations on accreditation. To make rules and regulations issued by
administrative agencies valid, he enumerated three conditi that need to be satisfied: "(1) there is a law delegating the
rule making power; (2) the delegating law contains standards for the executive agency to follow; (3) the rules stay within
the standards set by the delegating law."

For Fr. Bernas, B.P. Blg. 232 neither provides rules to implement and standards to follow, nor delegates power to make
rules for private accrediting associations. Sec. 29 (voluntary accreditation) thereof simply states that "the Ministry shall
encourage programs of voluntary accreditation for institutions which desire to meet standards of quality over and above
the minimum required for State recognition. "CHED's reliance on Se 8(n) of R.A. No. 7722, which states that "the law
authorizes CHED to 'promulgate rules and regulations, and exercise such other functions as may be necessary to carry
out effectively the purpose and objectives of this Act'," is misplaced. Fr. Bernas cited that Sec. 2 of R.A. No. 7722
"contains the policy CHED is to follow: foster and promote affordable quality education; ensure and protect academic
freedom; promote and foster continuing intellectual growth, research, effective leadership; promote high- level and
middle-level professionals, and the enrichment of our historical and cultural heritage."

The accreditation of schools has become very controversial when CHED established the Institutional Quality Assurance
Monitoring and Evaluation (IQAME) in 2005 to regulate the exisung accreditations of private schools effectively. Because
of this, former President Arroyo issued H.O. No. 705 on January 2, 2008, 5 amended by E.O. No. 705-A issued on April
10, 2008. E.O. No. 705 subjected private schools not accredited by PAASCU to the

IQAME process. Sec. 1 of E.O, No. 705 was amended as follows:

SEC. 1. Higher education institutions with programs accredited by the five existing accrediting agencies, namely: the
Philippine Accrediting Association of Schools, Colleges and Universities (PAASCU), the Philippine Association of Colleges
and Universities- Commission on Accreditation (PACU-COA), the Association of Christian Schools, Colleges and
Universities-Accrediting Agency (ACSCU-AA), the Accrediting Agency of Chartered Colleges and Universities (AACUP), and
the Association of Local Colleges and Universities-Commission on Audit (ALCU- COA), shall not be subjected by the
Commission on Higher Education (CHED) under the process of Institutional Quality Assurance Monitoring and Evaluation
(IQUAME), provided that these accrediting agencies conform with a set of common standards formulated by a
Coordinating Council on Accreditation (CCA), hereafter to be established by the CHED.

The foregoing executive issuances are the very legal bases of CHED's regulation of the accreditation of private schools.
Arroyo issued the said executive issuances pursuant to her powers under the Constitution and E.O. No. 292 (the
Administrative Code of 1987). She thus delegated her power to CHED by directing it to formulate common standards for
existing accrediting agencies to enhance and improve the quality of education in the country. This delegation of power is
valid, unless revoked by the President.

Notably, CHED subsidizes the accrediting agencies in the accreditation of private schools. Likewise, private educational
institutions pay the accrediting body for accreditation in accordance with the law. With this and the said executive order
mandating the accrediting agencies to conform with a set of common standards formulated by CHED's Coordinating
Council on Accreditation (CCA), it is only proper, as part of the sovereign function of CHED, to regulate higher education,
including its accreditation, even if B.P. Big. 232 says it is voluntary. Education is neither a business nor an industry that
can be free of government regulation under the laissez-faire theory. It is a public interest. The same is true with respect
to the accreditation of private schools. CHED allocates millions of pesos for school accreditation For this reason, it has
the authority to regulate the accrediting agencies in line with its sovereign function and to fulfill its mandate to provide
quality education to all..

Internal Organization of Schools. Sec. 30 of B.P. Blg. 232 mandates each school to "establish such internal organization
as will best enable it to carry out its academic and administrative functions, subject to limitations provided by law" and
"sach arrangements for the peaceful settlement of disputes between or among the members of the educational
community."

Section 31 thereof requires every government college or university and every private tertiary school to "have a
governing board pursuant to its charter or the Corporation Code of the Philippines, as the case may be." As discussed
earlier, all private schools are required to incorporate in accordance with the Corporation Code. This gives a legal
personality to an educational institution which is separate and distinct from its incorporaters or stockholders, as
evidenced by the issuance of certificate of incorporation by the Securities and Exchange Commission.

Section 31, Art. VII of 2008 MORPHE provides that "every private higher education institution shall have a governing
board that shall exercise general supervision, have exclusive control and direction of all funds, prescribe policies, make
rules and regulations, and establish practices that are not inconsistent with law and the policies and rules of the
Commission." For a non-stock corporation, the board of trustees shall be composed of not less than five (5) nor more
than fifteen (15) members, provided, that the total number of trustees shall be multiples of five (5), unless otherwise
provided for by law. For a stock corporation, the provisions of the Corporation Code shall govern the number and term
of the board of directors.

The 2008 MORPHE declares that the control and administration of higher education institutions shall be vested in the
citizens of the Philippines except those established by religious groups or foreign mission boards. It requires that every
member of the board of trustees or directors of a private higher education institution shall possess at least a bachelor's
degree. It also provides the qualifications and functions of the head (president, rector, or director), the dean, and the
registrar (See MORPHE, Art. VII).

Section 32 of B.P. Blg. 232 protects the personnel of education institutions, both public and private. It provides that the
terms and conditions of employment in government schools shall be governed by the Civil Service, and budgetary and
compensation laws and rules. Disputes between the employers and employees in private schools "shall fall under the
jurisdiction of the Ministry of Labor and Employment as provided for by law regulations." Thus, personnel of
government schools are governed by the CSC rules and regulations, while those of private schools follow the Labor
Code.