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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).

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,

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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.

Despite of the 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.

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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
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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.

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Tertiary Education Tertiary Education

Subsidy GRANTEE Subsidy NON-
GRANTEE

Impact of Free Higher

Education
 Financial crisis
 Motivation of the
students
 Opportunity to learn
 Performance of the
students
 Emotional
Contribution

Profile
 Age
 Gender
 Year Level
 Status

Figure No 1. Theoretical and Conceptual Framework

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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

(2023), the subsidy is povital to students because it affects their academics and
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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
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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
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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.
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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?
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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?

Statement of Hypotheses

1. There is no significant impact of Tertiary Education Subsidy to

grantees and non-grantee student of Bohol Northern Star College

for the SY: 2023 – 2024.There is no significant relationship

between the profile and social values of the secondary students.

2. There is no significant impact of TES program on the financial well-

being of both grantees and non – grantees at Bohol Northern Star

College.

3. There is no significant difference in the demographic profiles of

TES grantees and non – grantees at Bohol Northern Star College

concerning gender, status and year level.

4. There is no significant relationship between social values and

academic behavior of secondary school students.

5. There is no significant impact of the TES program on the academic

performance of grantees at Bohol Northern Star College.

Significance of the Study

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This research helps to uncover how the Tertiary Education Subsidy affects

both grantees and non-grantees among BNSC students. TES, with no doubt, is

extremely important to students as it alleviates their financial burdens related to

education. In Bohol Northern Star College, while the Tertiary Education Subsidy

program is in place, however, it is important to note that not all students enrolled

in college are covered by this subsidy. By assessing its effectiveness and impact

to those who are covered and to those who are not, it will also help in aiding

localized policy improvements and fostering equitable and educational

opportunities. Knowing its impact to both grantees and non-grantees is crucial for

understanding how effective the program is, identifying potential inequalities, and

assessing its overall influence on students. This study is significant to the

following:

TES grantees. This study will help them gain a better understanding of

how the TES support impacts their financial stability throughout their academic

journey and how the program influences their overall educational experience.

Non-TES grantees. This research may provide a basis for advocating for

increased support or a chance to be a beneficiary of Tertiary Education Subsidy,

leading to a more inclusive and equitable educational environment.

Educational Institutions. BNSC and other educational institutions can

benefit by understanding the program's impact, enabling them to enhance

support systems for students more effectively.

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Policy makers. This research findings can advocate for policy

adjustments that may lead to expanded coverage. Policymakers can consider

modifications to make educational subsidies more inclusive, ensuring that a

broader range of students can benefit from this support system.

Future researchers. This study can serve as a reference or guide for

future studies of similar topic. This can also serve as a basis for more in-depth

investigations into specific aspects of educational subsidies, allowing future

researchers to build upon existing knowledge and explore new pathways in the

field.

Scope and Limitation

This research focuses on assessing the impact of the Tertiary

Education Subsidy (TES) program specifically within the context of Bohol

Northern Star College. The study considers both the TES grantees and non-

grantees of the school, offering a comprehensive examination of the program's

influence on diverse student groups.

The study was conducted at Bohol Northern Star College, and the

findings may not be generalized to other educational institutions. Data collection

relies on self-reporting from students, introducing the possibility of response bias

and limiting the objectivity of certain findings. Additionally, external factors

beyond the scope such as socio-economic conditions or individual differences

are acknowledged as potential influences not extensively explored within this

research.
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RESEARCH METHODOLOGY

Design

This research is using descriptive quantitative design in the TES program

affects both grantees and non-grantees at Bohol Northern Star College. This

study aims to investigate the impact of the Tertiary

Education Subsidy (TES) Program on both grantees and non-grantees at Bohol

Northern Star College.

The descriptive quantitative design will be employed to gather and analyze

data from a representative sample of students in order to assess the program’s

influence on educational attainment, financial burden, academic performance,

and overall satisfaction. The study will use a descriptive quantitative design to

collect and analyze data. A representative sample of students from Bohol

Northern Star College will be selected using stratified sampling.

Research Participants

The chosen population for this study are the students of Bohol Northern Star

College for the School Year 2023-2024. The Researchers conducted a survey on

selected 15 students on each College Departments in every year level. In

obtaining the sample, the researcher will be applying a non-random sampling

method. Thus the chosen sample will be based on the criteria:

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Inclusion criteria:

The participants of the study are Non-TES and TES grantee and an ongoing

enrollee for the School Year 2023-2024.

Research Environment

The study was conducted in Bohol Northern Star College. It is located at

Isaac Garces Street Poblacion, Ubay, Bohol. In fact, Bohol Northern Star College

is the only tertiary educational institution in Ubay which was granted as one of

the priority beneficiary of the Tertiary Education Subsidy from the Government

not only to sustain the annual tuition of the students but to keep them driven and

increase their possibility to target higher goals.

Instruments

To gather comprehensive and relevant evaluative information, a

descriptive survey method was employed, utilizing research questionnaires as

the primary tool for data collection. A random sampling technique was used,

selecting respondents from Bohol Northern Star College. The descriptive survey

profile was used to determine the respondents' characteristics, and the survey

questionnaire was used to assess the effectiveness of tertiary education subsidy

programs for grantees and non-grantees, using the Likert Scale.

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The researchers used a modified checklist questionnaire; developed by

Capinig, C., Guinoo, P., et al. entitled The Quality of life and experience of

Tertiary Education and Subsidy, (2023) and Helen Fuentes entitled Transitional

experiences of tertiary education subsidy grantees, (2021) and Nuraan

Aghendien entitled investigating student readiness for tertiary education, (2014).

The inter-rater reliability method will be utilized to assess the reliability of this

method questionnaire.
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LEGEND: Locale of the Study

Figure 3. Map of Ubay, Bohol

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Data Gathering Procedures

The researchers personally distributed the questionnaire to the target

respondents by department according to the formulated schedule of distribution.

Furthermore, the researchers assured the confidentiality of their responses and

sincerely sought their utmost cooperation in honestly and objectively answering

the survey. Afterwards the questionnaires were personally retrieved by the

researchers for tabulation, treatment, analysis, and interpretation purposes.

Beforehand, the researchers seek proper procedure of securing the

approval from the Dean of the College of each department and official permit

from the respective president of Bohol Northern Star College upon conducting

this study, the researcher likewise asked permission to the teachers for the

purpose of this study. The researcher distributed the questionnaires personally to

the respondents and explained to them thoroughly the importance of the study

and assisted in answering the questionnaires to clarify the complex words or

questions to the respondents. The said respondents were given ample time to

answer the questions.

After gathering the data, it was then tallied, tabulated, collated and were

subjected to analysis and interpretation in accord to the specific statistical

treatment.

Statistical Treatment of Data

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The data is subjected to different statistical tool in order to answer the

research problems. In determining the percent distribution and mean, the

following formulas are used (Downie & Health, 1994):

Percentage:
f
P= ×100
n
Where:
P= percentage
f = frequency
n = number of cases

To analyze the mean for each item, this formula was use:
Mean:

´ x=
∑x
n
Where:
´ x=¿ sample mean
n=¿ total number of respondents

Pearson Product – Moment Correlation. To find out if there

is a significant relationship between the profile age, monthly income of the

parents and the GPA of the respondents. The formula for Pearson r is presented

below:

x
y
∑¿
¿
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¿
¿
2
x¿
¿ n ∑ y −¿
2

¿
∑ ¿¿
N ∑ x −¿ ¿ ¿
2

¿
∑ ¿¿
xy−¿
n∑¿
r XY =¿

Where:

n = number of paired observations

xy=¿

∑ the sum of the product of x and y

¿

x2=¿

∑ the sum of the squared values of x

¿

y 2=¿

∑ the sum of the squared values of y

¿

∑ x=¿ the sum of the values of x

y=¿

∑ the sum of the values of y

¿

Spearman Rank Correlation Coefficient was used to determine if

there is a relationship between the year level and the GPA of the respondents.

Point Biserial Correlation Coefficient. To establish the relationship

between the sex and the GPA of the respondents, this correlational tool was use:
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r pb=
´ x 1−´ x 2
Sx √
n1 n2
n(n−1)

Where:

´ x 1=¿ mean on the interval or ratio-scale variable of one group

´ x 2=¿ mean on the interval or ratio-scale variable of the other

group

n1=¿ number of cases in one group

n2 =¿ number of cases in other group

n=¿ total of number of cases

s x =¿ standard deviation of all measure in the interval or ratio-

scale variable

To test whether the obtained r is significantly different from zero (specified

value of the population correlation coefficient), the following formula of t-test was

used:

t=r
√ n−2
1−r 2

Where:
df =n−2

To test the null hypothesis, the probability level was set at 0.05 level of

significance.
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Eta Correlation. To determine if there is significant relationship between

the profile: age, sex, year level, monthly income of parents and

satisfaction towards FHE of the student eta correlation was use.

Where:
eta=
√ SS B
SS T

SS B=¿between group of sum of squares

SST =¿ total sum of squares

Since eta correlation is obtained by solving a One-Way

Analysis of Variance (ANOVA), the following formulas may be use.

Step 1. Sum of squares Total:

∑ x ¿2
¿
¿
x−¿
SST =∑ ¿

Step 2. Sum of Squares Between:

∑ x 1 ¿2
¿
∑ x 2 ¿2
¿
∑ x n ¿2
¿
∑ x ¿2
¿
¿
¿
¿
¿
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SS B=¿

Step 3. Sum of Squares Within:

SSw =SS T −SS B

Step 4. Mean Squares Between:

SS B
MS B =
d . f .b

Step 5. Mean squares Between:

SS W
MS W =
d . f .w

Degrees of Freedom:
d . f . b=k−1 d . f . w=N −k

Where:

N = total sample size

k = number of groups

Step 6. F- Test: This is the last step in solving. One-way Analysis of variance

(ANOVA)plays an important role in testing the significance of eta. If the F-test is

significant, eta is also significant.

The formula is shown below:

MS B
F=
MSW

The correlation was tested at the o.05 level of significance.

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Spearman Rank Correlation Coefficient was used to determine if

there is a relationship between the year level and the GPA of the respondents.

To test whether the obtained r is significantly different from zero (specified

value of the population correlation coefficient), the following formula of t-test was
used:
DEFINITION OF TERMS

It is important to clarify first terminology that will be utilized throughout the

research study in order to avoid doubts and confusions in the interpretation of

data. For easy access and guidance of readers to some key terms used in this

study, the following terms are herein defined:

Quality Education. Refers to the type of education which enables

students to develop all of their attributes and skills to achieve their potential as

human beings and members of society.

Academic Performance. Refers to the students' interaction and

cooperation to the lessons given at school.

Financial stability. Refers to the financial sufficiency & capacity of a

student to be able to sustain & afford their school expenses.

Demographic profile. Refers to the specific characteristics within a given

population and include such things as age, income level and geographic location.

Parents. Are the persons involved in the foundations of values and virtues

of the children in various aspects of life.

Students. Are the tertiary students of Bohol Northern Star College which

serves as the respondents of the study.