CEAP Official Voices Concerns Over "No Permit, No Exam Prohibition Act" and Its Potential Impact on Private School Finances.

 On Thursday, an official from the Catholic Educational Association of the Philippines (CEAP) expressed concerns that the Senate's decision to pass Senate Bill 1359, also known as the "No Permit, No Exam Prohibition Act," could pose a financial threat to private schools. CEAP Executive Director Jose Allan Arellano explained that the Catholic education and private education systems rely heavily on tuition payments from parents, unlike government-funded public schools that have other sources of revenue. Arellano urged lawmakers to consider the unique circumstances of private schools and their need to require payments from parents. CEAP represents 1,500 Catholic schools and universities nationwide. In December 2022, the House of Representatives approved House Bill 6483, which allows college students with unpaid school fees to take periodic and final exams under certain circumstances. It's worth noting that Article 16, Section 4 (3) of the Constitution prohibits the government from taxing schools run by Catholic and other religious organizations.

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The "no permit, no exam" regulation has long been a standard in private institutions, which is what raises CEAP's worries. Before taking tests or receiving their scores, it is required by rules that students pay any unpaid tuition. It is a measure designed to make sure that schools have the resources they require to run efficiently and pay their employees.

The passage of the "No Permit, No Exam Prohibition Act" in the Senate could potentially disrupt this practice, as private schools would no longer be allowed to withhold exams from students who have not paid their tuition fees. This could lead to financial instability for private schools, as they would have to find other ways to generate revenue to sustain their operations.

However, a bill that allows college students who have unpaid school fees to take periodic and final exams on "good cause and justifiable grounds" has been approved by the House of Representatives; this could be a relief to private schools since they would still be able to withhold exams from students who do not have a good reason for not paying their tuition fees.

Despite the potential financial implications of the "No Permit, No Exam Prohibition Act," it is worth noting that the Constitution prohibits the government from taxing schools run by religious organizations such as Catholic schools. This provision ensures that private schools have some measure of financial autonomy, but it also means that they must rely heavily on tuition fees to sustain their operations.

Private schools, especially those managed by religious organizations like the CEAP, may suffer financially if the "No Permit, No Test Ban Act" is passed. Private schools may still need to find other sources of income to support their operations, even if lawmakers just enacted a bill that offers some relief to college students who have outstanding school fees.