The Guagua National Institute was the brainchild of Rev. Fr. Nicanor M. Banzali, former parish priest of Guagua, Pampanga. In 1918, he conceived the idea of founding an education institution to inculcate faith in God, search for knowledge and love of country in the minds of the youth, and to satisfy the educational needs of his parishioners, especially those of the poor. Then, only one elementary school existed in each town. Accordingly, with the encouragement and approval of His Grace, Monsignor Michael O'Doherty, Archbishop of Manila and the generous cooperation and support of handful of civic-spirited residents of the town, the Guagua National Institute started to operate on June 18, 1918, with the opening of classes in the primary grades. Classes were held at the old Guagua Catholic Convent.