NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s. No. 274
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22 JUL11 P6:20
RECEIVED BY:
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
ESTABLISHING THE COLLEGE LIVING EXPENSES FINANCING (CLEF) 
PROGRAM TO SUPPORT HIGHER STUDIES OF FILIPINO STUDENTS OF 
GOOD ACADEMIC STANDING, MANDATING THE NATIONAL GOVERNMENT 
TO SET UP A LOAN GUARANTEE FUND ON STUDENT LOANS TO BE 
PROVIDED BY THE DEVELOPMENT BANK OF THE PHILIPPINES (DBP) AND 
THE LAND BANK OF THE PHILIPPINES (LBP), APPROPRIATING FUNDS 
THEREFOR AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Republic Act. No. 10931, otherwise known as the "Universal Access to Quality 
Tertiary Education Act" provides that quality education is an inalienable right of all 
Filipinos and it is the policy of the State to protect and promote the rights of all 
students to quality education at all levels. Therefore, the State shall take appropriate 
steps to make such education accessible to all.
The said law provides for free tuition and exemption on other fees for students 
of state colleges and universities. While this significantly contributes to making quality 
education accessible to all, it must be noted that there are a lot more factors that 
hinder the attainment of this desired goal. One such obstacle is the cost-of-living 
expenses and other education related expenses which discourages qualified students 
in families below the poverty line to consider pursuing higher education.
Libre man po ang tuition fee para sa ating mga estudyante. Marami pa rin po 
ang nahihirapan tumuloy sa kolehiyo sapagkat wa/a po silang mapagkukunan ng


pangtustos para sa kanilang pamumuhay habang nag-aaral. Lab na po sa mga 
estudyanteng galing sa malayong lugar at kailangan pa pong magbiyahe at lumipat 
para makapag-aral, kailangan po ay mabigyan natin sila ng pagkakataon na 
magkaroon ng pagkukunan ng para sa kanilang tirahan, pagkain, akiat at iba pang 
gastusin.
Although there are existing scholarships and grants, their scope is still limited.
Thus, this bill seeks to fill that gap by providing a means to cover other 
expenses that necessarily come with studying, such as board and lodging, pocket 
money, transportation costs, food expenses, uniforms and personal clothing, books 
and supplies and other miscellaneous expenses. Moreover, this bill seeks to alleviate 
the burden that the students face by offering them student loans with minimal interest.
In view of the foregoing, early passage of this bill is earnestly requested.
. LAPID
Senator


Senate
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NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
274
•22 JULll P6 20
WtCEiMD DV:
S. No.
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
ESTABLISHING THE COLLEGE LIVING EXPENSES FINANCING (CLEF) 
PROGRAM TO SUPPORT HIGHER STUDIES OF FILIPINO STUDENTS OF 
GOOD ACADEMIC STANDING, MANDATING THE NATIONAL GOVERNMENT 
TO SET UP A LOAN GUARANTEE FUND ON STUDENT LOANS TO BE 
PROVIDED BY THE DEVELOPMENT BANK OF THE PHILIPPINES (DBP) AND 
THE LAND BANK OF THE PHILIPPINES (LBP), APPROPRIATING FUNDS 
THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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SECTION 1. Short Title. - This Act shall hereinafter be referred to as the 
"College Living Expenses Financing (CLEF) Act'.
SECTION 2. Declaration of Policy. - Republic Act. No. 10931, otherwise known 
as the "Universal Access to Quality Tertiary Education Act," provides that quality 
education is an inalienable right of all Filipinos and it is the policy of the State to 
protect and promote the rights of all students to quality education at all levels. 
Therefore, the State shall take appropriate steps to make such education accessible 
to all.
Republic Act No. 10687, otherwise known as "Unified Student Financial 
Assistance System for Tertiary Education (UniFAST) Act," further provides that the 
State shall provide adequate funding and such other mechanisms to increase the 
participation rate among all socioeconomic classes in Tertiary Education, especially


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the poor, thereby promoting equitable and Rationalized Access by poor Filipinos to 
quality Tertiary Education.
In furtherance of these policies, it is hereby declared the policy of the State to 
promote the capacities of all citizens to improve their lives and life chances by way of 
greater and enhanced access to financial resources towards achieving for themselves 
quality higher education.
SECTION 3. Coverage. - The CLEF program shall be made available to all 
Filipino students who are either enrolled at the time of the effectivity of the Act, or 
admitted to enroll at any time thereafter, in courses leading to a bachelor's degree in 
any higher educational institution accredited by the Commission on Higher Education 
(CHED).
SECTION 4. - Nature of the Financial Assistance. The CLEF Program is a long­
term personal loan program designed to provide for the living expenses of Filipino 
college students. Living expenses shall cover, but not limited to, the following:
(a) Board and lodging;
(b) Living allowance;
(c) Transportation costs;
(d) Food expenses;
(e) Uniforms and personal clothing;
(f) Books and supplies;
(g) Internet and digital connectivity expenses;
(h) Other miscellaneous expenses
The loan shall be provided by and disbursed through the Land Bank of the 
Philippines and Development Bank of the Philippines.
Each eligible student shall be entitled to a maximum loan amount of Php 50,000 
per semester or enrollment and a maximum of Php 400,000 allowing for up to five (5) 
years of college enrollments. The maximum loan amounts set forth therein may be


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adjusted every five (5) years on the basis of improvements in the standards of living, 
as may be determined by the disbursing financial institutions in consultation with the 
CHED and the Philippine Statistics Authority (PSA).
The loan shall have a maximum term of twenty-five (25) years, an interest rate 
of lower than the prevailing interest rate subject to the discretion of the disbursing 
financial institutions, and a grace period on principal and interest payments so that 
amortizations shall start one (1) year from the date of graduation or the end of the 
last semester of enrollment, whichever is later.
The administration of the CLEF Program shall be a shared responsibility of the 
(1) CHED, which shall process and endorse the loan application requirements of 
eligible students, and (2) the disbursing financial institutions, which shall release the 
amounts based on an approved disbursement program agreed with the student.
SECTION 5. Credit Guarantee by National Government - In order to cover for 
the risk exposures of the disbursing banks, the CLEF Guarantee Fund is hereby created 
within the Philippine Guarantee Corporation (PHILGUARANTEE), which shall be funded 
by yearly appropriations from the national government in the amount of ten billion 
pesos (P10,000,000,000.00) over the next ten (10) years to be deposited with the 
National Treasury. The CLEF Guarantee Fund may support loans to the students up to 
five (5) times of its nominal value. The endorsement of the Unified Student Financial 
Assistance System for Tertiary Education (UniFAST) Board shall be sufficient basis for 
the credit guarantee for the specific beneficiary student.
SECTION 6. Tracking and Monitoring. - Consistent with its mandate under 
Republic Act No. 10678 and Republic Act No. 10931, the UniFAST Board shall monitor 
and track the progress of the student loan beneficiaries under the CLEF Program to 
ensure that minimum academic standards of educational achievements are met. For 
purposes of encouraging good student performance. Sections 11, 12, and 13 of 
Republic Act No. 10687 shall also apply to the CLEF Program.


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For purposes of tracking after graduation or leaving college without graduating, 
Section 15 (r) of Republic Act No. 10687 shall also apply to CLEF beneficiaries as part 
of the loan contract that they shall sign.
SECTION 7. Implementing Rules and Regulations. - Within thirty (30) days from 
the effectivity of this Act, the CHED and the UniFAST Board, in consultation with the 
local government leagues, and officials from the Bureau of Treasury, LandBank, 
Development Bank of the Philippines, and other stakeholders, shall promulgate the 
Implementing Rules and Regulations necessary for the proper implementation of this 
Act.
SECTION 8. Separability Clause. - If, for any reason, any provision of this Act 
is declared unconstitutional or invalid, parts or provisions of this Act which are not 
affected shall continue to be in full force and effect.
SECTION 9. Non-Impairment Clause. - Nothing in this Act shall be construed as 
to diminish, impair, or repeal rights recognized, granted, or made available to 
disadvantaged, marginalized, or specific sectors under existing laws.
SECTION 10. Repealing Clause. - All laws, executive orders, presidential 
decrees, implementing rules and regulations inconsistent with this Act are hereby 
repealed or modified accordingly.
SECTION 11. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in two newspapers of general circulation.
Approved,