Chapter 1

THE PROBLEM AND ITS SCOPE

INTRODUCTION

Rationale

Education is a weapon to improve one’s life. It is a powerful agent of

change. According to Allison Academy 1893, the success of an individual greatly

depends on their level of education and the ability to practically apply what they

have learned. The accessibility of quality education is not only important for

individual development but also for the development of the society as a whole.

Lack of Education is the main reason why many families, and even entire

communities live in poverty for generations. Without knowledge, they lack the

basic tools needed to change their life for better. Education helps young

individuals to understand their position and recognize the opportunities available

to them.

It as well is a known fact that many of the students struggle with their

finances especially when it comes to educational expenses. That is why the

government provides programs that will help the students with their problems and

that is through the Tertiary Education Subsidy (TES) of the Commission on

Higher Education (CHED).

TES is a grant-in-aid program under RA10931 or Universal Access to

Quality Tertiary Education Act given to qualified students enrolled in CHED-

recognized in public and private higher education institutions to support at least a

partial cost of tertiary education, inclusive of education-related expenses. It is

designed to lighten the financial burden that students and their families may face

in covering the costs associated with higher education including tuition fees,

books, supplies and other educational expenses. The significance of the TES

program lies in its ability to promote accessibility and inclusivity in higher

education.

According to Purigay (2020), Tertiary Education Subsidy provides the will

or persistence to finish their college degree and also shows that the focus and

eagerness to the discussion and different kinds of task in their school results in

excellence in academic performance. The financial support coming from the

government contributed to the students' motivation to do activities and perform

well in school to finish their degree.

Over the past few years, Bohol Northern Star College has been one of the

school beneficiaries of the subsidy program. However, due to some reasons the

subsidy program has been ceased this school academic year 2023-2024.

Although there are continuing grantees, particularly fourth year and some of the

third-year irregular students, it is still assumed that 80% of the school’s

population are TES non-grantees.

With this insight, the researchers are conducting a study that concerns to

understand and analyze the impact of the Tertiary Education Subsidy Program

towards both grantees and non-grantee to which we can assess whether it is

effectively promoting equity and increasing to higher education for individuals.

 Furthermore, a comparative analysis on the impact of TES program on

grantees and non-grantees is important to assess how the program influences

academic performance and educational journeys. It could help identify whether

the program has a significant positive effect on recipients, potentially leading to

improved academic outcomes or none at all. Such analysis could also inform

policymakers and higher ups to make decisions regarding its continuation and

improvement.

Literature Background

Education enriches people's understanding of themselves and world. It

improves the quality of their lives and leads to broad social benefits to individuals

and society. Education raises people's productivity and creativity and promotes

entrepreneurship and technological advances. - Ainsworth, Beegle, and Hoxby

(2006)

Education helps you develop critical skills like decision-making, mental

agility, problem-solving, and logical thinking. People face problems in their

professional as well as personal lives. In such situations, their ability to make

rational and informed decisions comes from how educated and self-aware they

are.

Education is essential in economic development because it plays a crucial

role in developing human capital, a population's knowledge, skills, and abilities

that contribute to economic growth. It helps people become better citizens, get a

better-paid job, shows the difference between good and bad. Education shows
the importance of hard work and, at the same time, helps us grow and develop.

According to Hanushek, E. A., & Woessmann, L. (2010), "Education is a

fundamental driver of economic growth. It plays a crucial role in developing

human capital, which is the knowledge, skills, and abilities of the population.

Education helps workers to be more productive and innovative, and it also helps

businesses to adopt new technologies and processes." Thus, we are able to

shape a better society to live in by knowing and respecting rights, laws, and

regulations. Hence there is no doubt that the government should subsidize

education.

The Philippine government is aware of the challenges facing the education

system and is working to address them. The government has increased its

investment in education and has implemented a number of reforms aimed at

improving the quality and equity of education.

The Tertiary Education Subsidy (TES) Program is a financial assistance

program of the Philippine government that provides subsidies to Filipino students

enrolled in public and private higher education institutions (HEIs). The program

aims to make tertiary education more accessible and affordable for Filipinos,

particularly those from low-income families.

 Theories Legal Bases

Human Capital Theory Universal Access to Quality

Government subsidies for Tertiary Education Act (RA 10931).
education can help to make This law was passed in 2015
education more accessible and and provides for free tuition
affordable for students, particularly and other school fees for
those from low-income families. students enrolled in public
(Gary Becker,1960). universities and colleges
(SUCs) and local universities
Social Justice Theory and colleges (LUCs). The law
Government subsidies for also foresees subsidies for
education can help to promote private higher education
social justice by making education institutions (HEIs).
more affordable for students from
all socioeconomic backgrounds. Constitution of the Philippines.
(Theodore Schultz, 1961) The Constitution states that
the State shall protect and
The Credentialism Theory promote the right of all citizens
Government subsidies for to quality education at all
education can help to make levels and shall take
education more accessible and appropriate steps to make
affordable for students. This can such education accessible to
lead to more students completing all.
tertiary education and obtaining the
credentials that employers require.
This can benefit students, even if
the credentials are not actually
necessary for the job.
(Randall Collins,1979)

Students Performance Financial Situation

Action Plan

Figure No 1. Theoretical and Conceptual Framework

 In addition to RA 10931 and the TES Program, the Philippine government

also offers a number of other tertiary education programs. These programs

include: Scholarship programs: The government offers a number of scholarship

programs for students pursuing tertiary education. These scholarships are

awarded based on a variety of criteria, such as financial need, academic merit,

and field of study; Student loan programs: The government offers a number of

student loan programs to help students finance their tertiary education. These

loans are typically offered at low interest rates and have long repayment terms;

Tuition fee subsidies: The government offers tuition fee subsidies to students

enrolled in certain HEIs and programs. These subsidies can help to reduce the

cost of tuition for students.

The Philippine government's tertiary education programs have had a

positive impact on access to and participation in tertiary education in the

Philippines. According to the Philippine Statistics Authority, the tertiary education

participation rate in the Philippines increased from 37.7% in 2015 to 49.1% in

2022. This increase is largely due to the government's tertiary education

programs.

Thus, college students are completely informed of the benefits they claim

under the UniFAST Organization. With the government’s funds for students’

educational assistance, it will enhance their persistence, raising their college

degrees. According to C. Capinig, JJ Godoy, P. Guinoo, N. Dela Cruz and J. Tus,

the subsidy is povital to students because it affects their academics and lessons
because of the government’s support. In Accordance with Importante et al.

(2019), some grantees are considered unsuccessful due to many issues within

they have completed their Re-Entry Action Plans (REAP’s) Qualities, motivation

and support from the government are considered their achievement for success.

Meanwhile, in the manner of Cagasan et al. (2019), many scholars are

very thankful for their financial support, it is one of the significant contributions to

their academic success. The financial support they received also contributed to

their motivation to do activities and perform well in school to finish their degree.

Having support from the government facilitated their academic success and it

gave them motivation and persistence to continue their studies. Aside from that

it has provided that the subsidy improve competencies in field of specialization,

building of confidence and offered opportunities for career development.

On the contrary , in accordance with Gonzales (2019), the tuition fees are

not completely done when it comes to supplying and providing free tuition.

Figuring out the crisis of the country in education not only for the government will

do the solution such as executing the law such as “Iskolar ng Bayan” for

incoming college students, rather create more programs for all students and be

comprehensive to help uneducated youths and to the poor category of the

society.

Moreover, in accord with Alda (2022), scholars' selfesteem and motivation

in both school and life are affected by the severity and impact of experiencing

stigma. Every aspect of the scholar's life may be negatively impacted by stigma,
while the majority of them were able to overcome the challenges, some of them

also gave up.

The study's main purpose is to asess the lived experiences of tertiary

education subsidy grantees and non – grantees and to provide a strong results of

evaluation about comparative analysis of the experiences of TES grantees and

non-grantees in Bohol Northern Star College.

This study aims to provide reliable insights and the statements about TES

and non - grantees' lived experiences. Optimistically, it must accentuate the

educational assistance of the Tertiary Education Subsidy (TES) and how it can

benefit the students despite the challenges they had experienced as college

students. The study will contribute to the comprehensive understanding terms of

the aspects that can be experienced by college students while living as TES

grantees; Evidence-based recommendations for policymakers and educators on

how to improve the TES program; and serves as a contribution to the field of

education research. Despite the positive impact of the TES program on grantees,

the impact on non-grantees is less clear. More research is needed to better

understand the overall impact of the program on the tertiary education system as

a whole. The findings of this study can be used to develop policies and programs

that make the TES program more effective and beneficial for both grantees and

non-grantees. This study will add to the existing body of literature on the TES

program and its impact on students and the tertiary education system.
 THE PROBLEM

Statement of the Problem

This study aims to determine how the TES program affects both grantees

and non – grantees at Bohol Northern Star College, exploring its impact on their

academic performance and financial stability. For the purpose of this research

work, the following research questions has been formulated;

1. What is the demographic profile of the student-respondents with

reference to their:

1.1 . gender;

1.2 . status; and

1.3 . year level?

2. What is the effect of TES subsidy to grantees and non – grantees in

terms of:

2.1 . students performance;

2.2 . financial situation?;

3. What is the impact of the TES program on academic performance of

grantees?

4. What is the impact of the TES program on the financial well-being of

grantees and non – grantee students?

5. How can the TES program be improved to better meet the needs of the

students?
 The Problem

Statement of the Problem

This study aimed to determine how the TES program affects both

grantees and non-grantees at Bohol Northern Star College, exploring its impact

on their academic performance and financial stability. For the purpose of this

research work, the following research questions has been formulated:

1. What is the demographic profile of the student-respondents with

reference to their:

1.1 gender;

1.2 status; and

1.3 year level?

2. What is the effect of TES Subsidy to grantees and non-grantees in

terms of:

2.1 student performance;

2.2 financial situation?

3. What are the perceived benefits of TES program reported by grantees

and non-grantees at Bohol Northern Star College?

4. What are the advantages do grantees experience with the TES, and

how does this differ from the experiences of non-grantees?

5. What are the challenges that non-grantees face in comparison to

grantees concerning Tertiary Education Subsidy?

6. Is there a significance of the TES for grantees compared to non-

grantees in achieving their respective goals?

7. Based on the findings of the study, what is the proposed action plan to

be implemented?