THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
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First Regular Session 
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S.B. No. 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
This bill was originally drafted by the participants in the Sumnzer sa Senado program, 
namely: Alfred de Guzman, Karlos Entuna, Deona Laine Figura, Kerwyn Garcia, Michael 
Pernites, and Sandee Recabar. 
The Constitution, Article 14, provides: 
Section 1. The State shall protect and promote the right of all citizens to 
quality education at all levels and shall take appropriate steps to make such 
education accessible to all. 
Section 2. The State shall: 
x x x x x  
(2) Establish and maintain a system of free public education in the 
elementary and high school levels. Without limiting the natural right of parents to 
rear their children, elementav education is compulsory for all children of school 
age. 
(3) Establish and maintain a system of scholarship grants, student loan 
programs, subsidies, and other incentives which shall be available to deserving 
students in both public and private schools, especially the underprivileged. 
However, despite the mechanisms already implemented by the government like the 
assistance given to students in private education provided in R.A. No. 6728, many Filipinos still 
cannot afford the rising cost of education. As a result, a substantial number of students take part 
time jobs to cover the expenses. Others cut their expenses on basic needs such as food, 
medicine, clothing, and housing. 
This bill aims to alleviate the burden of shouldering educational expenses placed on the 
students. 
It gives discounts for college students, particularly those who belong to the 
underprivileged class forced to take part time jobs. The government instituted a similar discount 
mechanism for assisting senior citizens in R.A. No. 7432. 
I 
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MIRIAM DEF 


. 
THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N  
S.B. No. 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
GRANTING DISCOUNTS TO UNDERPRIVILEGED COLLEGE STUDENTS ON BASIC 
AND EDUCATION SERVICES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title, -- This Act shall be known as the “Underprivileged College 
Students Discount Act.” 
SECTION 2. Declaration cf Policy. - It is the policy of the State to prioritize quality 
education and take appropriate steps to make such education accessible to all. 
SECTION 3. Dejnition. - As used in this Act: 
(1) “Underprivileged College Students” refer to persons enrolled in the tertiary 
level who are forced to tale part-time jobs to subsidize their education. It shall refer to a 
student, whose annual gross income combined with the gross annual income of his 
parents, do not exceed One Hundred Thousand Pesos (PlO0,OOO.OO) subject to review by 
the National Economic and Development Authority (NEDA) every three (3) years; 
(2) “Secretary” refers to the Secretary of Education, Culture and Sports; and 
(3) “Chairman” refers to the Chairman of the Commission on Higher Education. 
SECTION 4. Discounts for the Underprivileged College Students. - 
(1) On Food Establishments -A five percent (5%) discount shall be granted to the 
underprivileged college students by food establishments such as food chains, canteens, 


restaurants anywhere in the country: Provided, that private food establishments may 
claim the cost as tax credit; 
(2) On Transportation - A five percent (5%) discount shall be granted to the 
underprivileged college students by any public vehicle operator anywhere in the country; 
(3) On Medicines - A five percent (5%) discount shall be granted to the 
underprivileged college students by pharmacies or drug stores anywhere in the country: 
Provided, that these pharmacies or drug stores may claim the cost as tax credit; 
(4) On Textbooks and School Supplies - A five percent (5%) discount shall be 
granted to the underprivileged college students by establishments anywhere in the 
countiy, who sell reference books for college and school supplies; Provided that these 
establishments may claim the cost as tax credit; and 
(5) On Tuition Fees, Miscellaneous, and Other School Fees. -A five percent (5%) 
discount on these fees shall be granted to the underprivileged college students by schools 
where they are enrolled anywhere in the country, without prejudice to their right in 
availing of the other educational assistance given by the government such as the “Study 
Now, Pay Later Plan under R.A. 6728; Provided that the schools may claim the cost as 
tax credit. 
SECTION 5. Limitation. - The right of any underprivileged college student to avail 
himself of the discounts under this Act shall not apply: 
(1) if he fails for one (1) school year in the majority of the academic subjects in 
which he has enrolled during the course of his study unless such failure is due to some 
valid cause beyond his control; 
(2) if he fails to finish his course within two (2) years after the year within which 
he should have graduated; 
(3) if he stops schooling for one (1) school year unless such is due to some valid 
cause beyond his control; and 
(4) if he is convicted of any crime. 


SECTION 6. Ofice for Underprivileged College Student. - The Secretary and the 
Chairman shall establish an Office for the Underprivileged College Students in the Commission 
on Higher Education. The functions of this office are: 
(1) to plan, implement, monitor yearly work programs, evaluate, and submit 
annual reports in pursuance of the objectives of this Act; 
(2) to conduct investigation, receive documentary proof, and identify who are the 
eligible underprivileged college students based on the provisions in this Act; 
(3) to maintain and regularly update on a quarterly basis, the list of 
underprivileged college student to avail of the discounts; 
(4) to issue certificates which shall be valid anywhere in the country as proof of 
the eligibility of the underprivileged college student to avail of the discounts; 
(5) to cancel the certificates issued for those covered under section 5. 
(6) to provide information with the affected establishments under Section 4 for 
any questions regarding the eligibility of any underprivileged college students claiming 
the discounts; and 
. 
(7) to perform such other functions as may be determined by the Chairman and 
the Secretary in the implementation of this Act. 
SECTION 7. Implementing Rules and Regulations. - The Secretary and the Chairman, in 
coordination with the National Economic Development Authority, the Department of Health, 
Land Transportation Franchising and Regulatory Board, the Department of Trade and Industry, 
Department of Budget and Management, and such other agencies concerned with the 
establishments which may be affected by this Act, shall issue the necessary rules and regulations 
to carry out the objectives ofthis Act. 
SECTION 8. Penalties. - The first violation of any provision of this Act shall cause the 
suspension of the license to operate or the business permit of the establishment or person 
concerned for not less than one (1) week but not more than four (4) weeks. 


SECTION 9. Appropriation. - The national government shall appropriate such amounts 
as may be necessary to carry out the provisions and objectives of this Act. 
SECTION 10. Separability Clause. - If any provision or part thereof, is held invalid or 
unconstitutional, the remainder of the law of the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 11, Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent 
with, the provisions of this Act is hereby repealed, modified, or amended accordingly. 
SECTION 12. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
1-N:2177