The House Committee on Higher Education has endorsed for plenary approval a measure mandating the Bureau of the Treasury (BTr) to issue an “Educational Bond Fund.”
House Bill 1219, or the Universal Capital for Higher Education, authored by Bicol Rep. Joey S. Salceda seeks to ensure that all Filipinos shall have the minimum amount resources to pursue higher education once they are about to reach college.
The measure mandates BTr to issue a corresponding number of treasury bonds with par value of P25,000 each and maturity term of up to 18 years on behalf of and for the account of all newborns to poor mothers.
“Out of 1.7 million babies born per year, we estimate about 383,000 are born to poor families. This amounts to about P10 billion per year,” said Salceda.
The lawmaker said the primary objective of the bill is to put up a mechanism for the issuance of government securities, or treasury bonds, that would guarantee future funds for the college education of underprivileged Filipino youth and equalize opportunities for their advancement.
It will operate like a layaway plan, which would dedicate the proceeds to one future need—college education.
Salceda said the bill guarantees the poor the right to an access to higher education at birth and insulates them from the vagaries of politics and economic uncertainties.
Under the bill, all proceeds of the bond shall be pooled and invested in government securities whose income is accumulated and held in trust by the National Treasurer in a fund called “Educational Bond Fund” which will then be unlocked once the child enters college provided their families are still poor based on Department of Social Welfare and Development assessment.
According to Salceda, the P25,000 initial fund must have already accumulated to P150,000 within over 18 years.
“It will be divided into four equal releases to the beneficiary, which he can use to support school expenditures and other costs of tertiary education, or any part or portion thereof. Release of the amount to the beneficiary shall be subject to conditions,” he added.
Meanwhile, Salceda said the measure will not impact the deficit until the 18th year and is spread over four years.
“In the short term, it will merely add P10 billion to debt load every year which can easily be accommodate by the 42 percent NG [national government] debt-to-GDP [grosss domestic product] ratio which is the lowest in the region,” he added.
Salceda said education is seen as a leveling factor that will help students compete for better jobs and better salaries.
However, the lawmaker, citing the Philippine Statistics Authority’s 2017 Annual Poverty Indicators Survey (APIS), said the percentage of dropouts remains high.
In its 2017survey of out-of-school children and youth (OSCY), the PSA determined that of the 39.2 million Filipinos aged 6 to 24 years old, 9.1 percent belong to OSCY, he said.
“The numbers are very clear. Poverty is the greatest single driving force that keeps children away from school. Poverty restricts a child’s view of the future. Poor families are more preoccupied with providing themselves with food, shelter and paying the bills so that education is relegated to the backburner,” Salceda said.
