CAP assures on-time tuition payments for beneficiaries

Leading pre-need company College Assurance Plan Inc. (CAP) has assured the public that none of its scholars were ever denied the permit to take their exams on account of delayed payments to the schools where they are enrolled in.

In a statement issued yesterday, CAP explained that under its direct-to-school payment facility agreement (DSPFA), it enters into an arrangement with the school to pay in advance 60 percent of the estimated tuition fees for its scholar-beneficiaries who will enroll in that particular school.

A month after enrollment, the school sends a bill to CAP for its scholars who have actually enrolled. CAP then pays the school four weeks after the bill was sent or before the final exams.

In the case of the University of Santo Tomas (UST), CAP has advanced P48 million to the school on schedule – a month before the start of the second semester of school year 2003-2004. The balance of P32 million was paid before the final exams – with all the students able to take the exam.

Under the same DSPFA, CAP said it pays UST a processing fee of P100 each for each of its UST scholars which amounted to some P350,000 per semester for the 3,500 CAP scholars.

"Since 2003 and in the spirit of financial prudence, CAP is reviewing this system. With UST, effective school year 2004-2005, we agreed to put on hold the DSPFA. This means that until we agree on a new set of DSPFA terms and conditions, the 3,500 CAP scholars enrolled in UST have to go directly to CAP offices to claim their check payments," CAP said.

CAP pointed out that not a single check issued to pay for the school fees of its scholars at UST bounced.

CAP also explained that it is bound to pay only the tuition fees and standard fees and not all miscellaneous fees. "For this reason and upon advice of its auditors, CAP has to meticulously review each student’s assessment and one by one prune to avoid erroneous payments of non-standard fees," the pre-need firm said.

Some of the fees that are reflected in the assessment sheets but are not payable under the CAP Scholarship Funding Agreement are the following: deposit on breakage and losses, development fee, insurance test papers, laboratory gowns, energy charges, athletics fee, Internet fee, or the repainting of school buildings.

Considering that its 90,000 scholars enrolled this school year, CAP said it is studying ways by which to speed up the review and processing system.