Evaluation of Unified Student Financial Assistance System in Tertiary Education (UniFAST) in Addressing Capital Market Imperfection in the Philippines

• Main Authors: Asuncion, Eric Jayson V., Tullao, Tereso S., Jr
• Format: text
• Published: Animo Repository 2018
• Subjects: UNIFAST; Financial Assistance; Scholarship; Tertiary Education; Scholarship of Teaching and Learning
• Online Access: https://animorepository.dlsu.edu.ph/res_aki/39; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=1038&context=res_aki
• Institution: De La Salle University

The importance of investing in higher education cannot be overemphasized. It can affect individuals’ income as well as the nations’ progress in terms of the quality of its labor force. However, the participation rate in the Philippines in higher education over several decades has remained relatively stagnant compared with our neighboring countries like Thailand and Korea. Part of the reason for the low participation rate can be attributed to poverty issues as well as the financing problems of the able students who lack sufficient funds to cover the cost of education. Individuals and even organizations always seek the help of capital markets to address such issues of inadequate funds. However, the capital market is not perfect. One cannot use his/her skill or promise for the rendition of service in the future as a form of collateral in exchange of borrowing funds. This is the very reason why the government enacted the Unified Student Financial Assistance System for Tertiary Education Act (R.A. No. 10687) or UniFAST last May 11, 2016. It aims to allow citizens full access to quality education by providing adequate funding and to increase the participation rate in tertiary education.