FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
8 
fill6 19 P: 
: I  8 
Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
Every year, thousands of Filipino children troop to the schools, but only a handful 
of them get to actually complete their education. According to studies, out of 100 
schoolchildren who enter Grade I, only 65 are able to reach Grade VI. Out of this 
number, only 43 will manage to finish the four years in high school. From the 43, only 2 
will be able to enter college. 
Similarly, we notice a downward trend in the enrollment rate. 
Although 
enrollment in Philippine schools grew at an average of 1.98 ?'n 
yearly from 1995 to 2002, 
it decliiied at an average rate of 1% yearly from 2003 to 2008. 
In addition, enrollment rate in private schools is down to 60% for school year 
2008-2009, as compared to 85% last school year, mainly for financial reasons. The yearly 
increases in tuition by private schools had compelled many families to enroll their 
children in public schools, which result to overcrowding and shortage of school facilities. 
To address this, the Expanded Government Assistance to Students and Teachers 
in Private Education (GASTPE) was passed, allowing lower-income families to enroll 
thcir children in private schools. Through GASTPE, a voucher system of tuition fee 
payment was introduced. 
Since its implementation, the program has benefitted more than half a million 
sludent-grantees. However, there is a need to improve the system lo make it more 
responsive and attuned to the needs of the students and the schools. In particular, it is 
imperative to increase the financial assistance extended to students in both the secondary 
and tertiary levels. 
This amendatory bill, aims to do just that. It is for this reason that the approval 01 
the same is earnestly sought. 
Manny H 
V liar 


FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
1 
S E N A T E  
Senate Bill No, 
54 
Introduced by Senator Manny Villar 
AN ACT 
AMENDING REPUBLIC ACT NO. 8545, OTHERWISE KNOWN AS 
THE “EXPANDED GOVERNMENT ASSISTANCE TO STUDENTS 
AND TEACHERS IN PRIVATE EDUCATION ACT” PROVIDING FOR 
AN EXPANDED VOUCHER OR COUPON SYSTEM IN SECONDARY 
AND TERTIARY EDUCATION, AND APPROPRIATING FUNDS 
THEREFOR. 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congvess assembled: 
SECTION 1. Republic Act 8545, otherwise known as the “Expanded 
Government Assistance to Students and Teacher in Private Education Act,” is 
hereby amended to read as follows: 
Sec. 2. Section 3 is hereby amended to read as follows: 
“Criteria for Assistance. The programs for assistance to 
STUDENTS shall be based on a set of criteria which shall include 
among others, tuition fees charged by the schools, socio-economic needs 
of each region giving priority to the 5th AND 6th CLASS 
MUNICIPALITIES, overall performance of the PRIVATE schools, the 
academic qualifications and the financial STATUS of the PRIVATE 
schools, as well as the RATIO OF PUBLIC SCHOOLS VIS A VIS 
PRIVATE SCHOOLS and size of student population IN THE PUBLIC 
SCHOOLS IN THE AREA.” 
“In addition to the forgoing criteria, within such reasonable time 
as the State Assistance Council may determine, student grantees shall be 
enrolled in schools which have accredited programs or are applying for 


accreditation as may be recognized by the respective State Assistance 
Council.” 
“Preference shall be given to students whose annual income is 
BELOW THE POVERTY THRESHOLD INCOME AS MAYBE 
DETERMINED 
BY 
THE 
APPROPRIATE 
GOVERNMENT 
AGENCY.” 
THE STATE ASSISTANCE COUNCIL MAY ADJUST THE 
ANNUAL FAMILY INCOME QUALIFICATION DEPENDING ON 
THE CHANGES IN THE ECONOMIC CIRCUMSTANCES AND 
CONDITIONS OF THE COUNTRY TO ACCOMMODATE MORE 
BENEFICIARIES. 
“The programs of assistance under this Act shall be extended only 
to students who are citizens of the Philippines.” 
Sec. 3. Section 4 is hereby amended to read as follows: 
“Forms of Assistance- Assistance to private education shall 
consist of assistance to students and teachers.” 
(1) Tuition fee Supplements for students in private high schools 
(2) TRANSPORTATION AND/OR BOOK ALLOWANCES for 
(3) EXPANSION OF THE voucher system of the Philippines Education 
(4)Expansion of the existing Educational Service Contracting Scheme; 
( 5 )  Scholarship grants to students graduating as valedictorians and 
(6) Tuition fee supplements to students in private colleges and 
(7) Education Loan fund 
including vocational and technical courses; 
Secondary and college students; 
Student Financial assistance Program ( PESFA) 
salutatorians from Secondary schools; 
universities; 
“The following are forms of assistance to teachers and faculty in private 
(1) In-service training fund for teachers in private high schools 
education: 
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(2) College Faculty Development Fund” 
Sec. 4. FOR PURPOSES OF THIS ACT, THE TUITION FEE 
CEILING FOR 
PARTICIPATING PRIVATE 
SCHOOLS IN 
THE 
EDUCATION SERVICE CONTRACTING SCHEME AND TUITION FEE 
SUPPLEMENTS FOR HIGH SCHOOL STUDENTS AND PRIVATE 
EDUCATION STUDENT FINANCIAL ASSISTANCE FOR COLLEGE 
STUDENTS IS SET AT SIX THOUSAND PESOS (P6,OOO) PER 
SEMESTER. THE TUITION FEE CEILING MAY SERVE AS A BASIS OF 
SELECTING / ACCREDITING SCHOOLS THAT WOULD LIKE TO 
PARTICIPATE IN THE PROGRAMS UNDER GASTPE. 
THE STATE ASSISTANCE COUNCIL SHALL REVIEW THE 
TUITION FEE CEILING ONCE EVERY TWO YEARS AND MAKE THE 
ADJUSTMENT AS DEEMED NECESSARY. 
“The State Assistance Council shall have the discretion to allow the 
schools which charge higher tuition fee than the tuition fee ceiling to participate 
in the programs under GASTPE.” 
Sec. 5. Section 5 of RA 8545 is hereby amended to read as follows: 
Tuition Fee Supplements in Private High Schools. 
(1) Financial Assistance for tuition for students in private high 
schools shall be provided by the government through a 
voucher system in the following manner: 
(a) For students enrolled in schools charging NOT 
MORE THAN SIX THOUSAND PESOS PER 
SEMESTER IN TUITION AND OTHER FEES, 
the government shall provide theni with voucher 
in such an amount as may be determined by the 
council. Provided, That the government shall 
reimburse the vouchers from the schools 
concerned within one hundred twenty (120) days 
from the close of the registration period. 
PROVIDED FURTHER THAT THE AMOUNT 
OF TUITION FEE SUPPLEMENT SHALL BE 
AT LEAST 20% OF THE PER CAPITA COST 
IN PUBLIC HIGH SCHOOLS. 
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(b) THE STATE ASSISTANCE COUNCIL MAY 
IN SUBSEQUENT YEARS INCREASE THE 
AMOUNT OF FINANCIAL ASSITANCE FOR 
STUDENTS UNDER THE TUITION FEE 
SUPPLEMENT 
SUBJECT 
TO 
THE 
AVAILABILITY OF FUNDS. 
(2) Assistance under Paragraph (l), subparagraph (a) shall be 
guaranteed to all private high schools participating in the 
program for a number of slots as of the effectivity of this Act 
as the total number of students who availed of tuition fee 
supplements for SCHOOL YEAR 2000-2001. Provided That 
the State Assistance Council may in subsequent years 
determine additional slots and/or additional participating 
high schools as may be deemed necessary. 
Sec. 6. Section 6 is hereby amended as follows: 
HIGH SCHOOL TEXTBOOK ASSISTANCE FUND FOR SCHOOLS 
CHARGING NOT MORE THAN SIX THOUSAND PESOS PER 
SEMESTER, THE GOVERNMENT SHALL PROVIDE THE STUDENT 
WITH TEXTBOOK ALLOWANCE WHICH IS EQUIVALENT TO AT 
LEAST ONE THOUSAND PESOS (P1,OOO) A YEAR OR THE ANNUAL 
PER 
CAPITA TEXTBOOK ALLOCATION PER 
STUDENT FOR 
ACADEMIC SUBJECTS IN PUBLIC SCHOOLS, WHICHEVER IS 
HIGHER. PROVIDED THAT THE TEXTBOOK ALLOWANCE MAY BE 
GIVEN TO BENEFICIARIES OF TUITION FEE SUPPLEMENTS AND/OR 
EDUCATION SERVICE CONTRACTING SCHEME FOR THE HIGH 
SCHOOL 
STUDENT§ 
AND 
PRIVATE 
EDUCATION 
STUDENT 
FINANCIAL ASSISTANCE FOR COLLEGE STUDENTS. 
Sec. 7. Section 7 is hereby amended as follows: 
EDUCATIONAL SERVICE CONTRACTING SCHEME- 
(a) THE DEPARTMENT OF EDUCATION, CULTURE AND 
SPORTS 
SHALL 
CONTINUE TO 
ENTER 
INTO 
CONTRACTS WITH PRIVATE SCHOOLS WHEREBY 
THE 
GOVERNMENT SHALL PROVIDE 
DIRECT 
FINANCIAL ASSISTANCE TO THE STUDENTS WHO 
WANT TO ENROLL IN PRIVATE SCHOOLS BUT DO 
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NOT HAVE THE FINANCIAL CAPABILITY TO 
AFFORD THE TUITION FEE IN THESE SCHOOLS. 
(b) The Department shall also enter into contracts with private 
schools ACCREDITED BY THE DECS particularly in 
communities where THE PUBLIC SCHOOLS CANNOT 
ACCOMMODATE THE STUDENTS DUE TO THE 
INCREASING STUDENT POPULATION, in which case 
the 
Department 
shall 
PROVIDE 
FJNANCIAL 
ASSISTANCE WHICH MAY COVER THE TUITION 
AND OTHER FEES OF STUDENTS WHO SHALL 
ENROLL-IN SAID PRIVATE SCHOOLS. 
(c) FOR STUDENTS ENROLLED IN SCHOOLS CHARGING 
NOT MORE THAN SIX THOUSAND PESOS PER 
SEMESTER IN TUITION AND OTHER FEES, the aniount 
of assistance to be given by the government shall be EQUAL 
to the per student cost in public high schools. 
(d)The Department shall fully pay the subsidized amount to 
participating schools not later than one hundred eighty (1 80) 
days from the close of the registration period. 
(e)The amount of assistance shall be allocated and distributed 
among the 16 regions in proportion to the total population as 
well as the high school age population for the first school 
yew; 
(0 The amount of assistance to private high schools 
participating in the program shall he guaranteed for a number 
of slots as of the effectivity of this Act as the number of 
students availing of educational service contracting for 
SCHOOL YEAR 2000-2001: Provided that the State 
Assistance Council may in subsequent years determine 
additional slots and/or additional participating private high 
schools as may be deemed necessary.” 
(g) IN CASES WHERE THE AMOUNT OF THE TUITION 
FEES AND OTHER FEES OF THE SCHOOL EXCEEDS 
THE AMOUNT OF SUBSIDY PRESCRIBED BY THE 
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STUDENT ASSISTANCE COUNCIL, THE PRIVATE 
SCHOOL MAY SHOULDER THE CORRESPONDING 
BALANCE AS COUNTERPART FUNDING. 
(h)THE 
STATE 
ASSISTANCE 
COUNCIL 
MAY 
IN 
SUBSEQUENT YEARS INCREASE THE AMOUNT OF 
FINANCIAL ASSISTANCE FOR STUDENTS UNDER 
THE 
ESC 
PROGRAM 
SUBJECT 
TO 
THE 
AVAILABILITY OF FUNDS. 
Sec. 8. ASSISTANCE TO COLLEGE FRESHMEN - 
Subparagraph (a) of Section 8 of RA 8545 is hereby amended as follows: 
THE VOUCHER SYSTEM OF PRIVATE EDUCATION 
STUDENT FINANCLAL ASSISTANCE (PESFA) PROGRAM. THE 
GOVERNMENT SHALL UNDERTAKE AN 
ANNUAL 
10% 
INCREASE IN THE AMOUNT OF ASSISTANCE PROVIDED 
UNDER THE PESFA PROGRAM COVERING THE TUITION FEE, 
BOOK ALLOWANCE AND/OR TRANSPORTATION ALLOWANCE 
AND STIPEND SO AS TO HELP THE STUDENTS COPE WITH THE 
INCREASING COST OF EDUCATION, SUBJECT TO THE 
AVAILABILITY OF FUNDS. PROVIDED THAT THX TUITION FEE 
CEILING FOR SCHOOLS IS SIX THOUSAND PESOS (P6,OOO) PER 
SEMESTER. PROVIDED FURTHER THAT SUCH FINANCIAL 
ASSISTANCE SHALL BE GRANTED TO DESERVING AND 
UNDERPRIVILEGED STUDENTS WHO SHALL BE SELECTED ON 
THE BASIS OF FAMILY INCOME, GEOGRAPHIC SPREAD AND 
RESULTS OF COMPETITIVE EXAMINATIONS GIVEN BY CHED 
FOR DEGREE COURSES PROVIDED FINALLY, THAT THE CHED 
SHALL DIRECTLY PAY THE AMOUNT COVERING THE 
TUITION FEE EXPENSES TO THE PARTICIPATING SCHOOLS. 
HOWEVER,THE STIPEND OF EACH STUDENT BENEFICIARY 
SHALL BE CLAIMED IN THE NEAREST CHED OR TESDA 
REGIONAL OFFICE. 
THE CHED SHALL REVIEW AND EVALUATE THE 
PRESENT COURSES OF STUDENTS WHICH ARE CONSIDERED 
PRIORITY n\r THE GRANTING OF FINANCIAL ASSISTANCE TO 
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MAKE THE LIST OF COURSES MORE MLEVANT TO THE 
NEEDS OF THE COUNTRY. 
FOR PURPOSES OF THIS ACT, AN UNDERPRIVILEGED 
STUDENT SHALL REFER TO A STUDENT WHOSE GROSS 
INCOME, IN ANY AND THAT OF THE COMBINED ANNUAL 
GROSS INCOME OF HIS/?IER PARENTS IS BELOW THE 
POVERTY THRESHOLD INCOME. 
Sec. 9. The following provision shall be inserted as part of RA 8545. 
SCHOLARSHP FUND IN PRIVATE HIGH SCHOOLS, COLLEGES 
AND UNIVERSITIES.- THE PARTICIPATING PRIVATE SCHOOLS IN 
THE GASTPE PROGRAM MAY INSTITUTIONALIZE COUNTERPART 
FUNDING TO FINANCE THE EDUCATION SERVICE CONTRACTING 
SCHEME, TEXTBOOK ASSISTANCE PROGRAM AND THE PRIVATE 
EDUCATION STUDENT FINANCIAL, ASSISTANCE PROGRAM. THE 
PRIVATE SCHOOLS ARE HEREBY ENJOINED TO PROVIDE A 
COUNTERPART OF AT LEAST 20% OF THE BENEFICIARIES. 
THE PRIVATE SCHOOLS WHICH ARE NOT PARTICIPATING IN 
THE PROGRAM MAY ALSO ALLOCATE A PORTION OF THEIR GROSS 
INCOME TO SCHOLARSHIP AND FINANCLAL ASSISTANCE FOR 
POOR BUT DESERVING STUDENTS. 
Sec. 10. The following provision shall be inserted as part of RA 
8545. 
CONDITIONS FOR TUITION FEE SUBSIDY. - ASSISTANCE 
PROVIDED IN THE PRECEDING SECTIONTIONS SHALL BE GRANTED 
ON THE CONDITION THAT SEVENTY PERCENT (70%) OF THE 
AMOUNT 
SUBSIDIZED SHALL GO TO 
THE 
PAYMENT OF 
SALARIES,WAGES, ALLOWANCES AND OTHER ADMINISTRATORS 
WHO ARE PRINCIPAL STOCKHOLDERS OF THE SCHOOL, AND MAY 
BE USED TO COVER INCREASES AS PROVIDED FOR IN THE 
COLLECTIVE BARGAINING AGREEMENTS EXISTING OR IN FORCE 
UPON THE EFFECTIVITY OF THIS ACT. PROVIDED THAT AT LEAST 
20% SHALL GO TO THE IMPROVEMENT OR MODERNIZATION OF 
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BUILDINGS, EQUIPMENT, LIBRARIES, LABORATORIES, GYMNASIA 
AND SIMILAR FACILITIES AND TO THE PAYMENT OF OTHER COSTS 
OF OPERATION. FOR THIS PURPOSE, THE SCHOOL SHALL 
MAINTAIN A SEPARATE RECORD OF ACCOUNTS FOR ALL 
ASSISTANCE RECEIVED FROM THE GOVERNMENT, ANY TUITION 
FEE INCREASE AND THE DETAILED DISPOSITION AND USE 
THEREOF. WHICH RECORD SHALL BE MADE AVAILABLE FOR 
PERIODIC INSPECTION AS MAY BE DETERMINED BY THE STATE 
ASSISTANCE COUNCIL. 
Sec. 11. 
The following provision shall be inserted as part of RA 
8545. 
APPROPRIATIONS 
THE DEPARTMENT OF EDUCATION MAY UTILIZE ITS 
SAVINGS FROM ANY ITEM OF APPROPRIATION IN FISCAL YEAR 
2001. PROVIDED THAT ANY DEFICIENCY SHALL BE TAKEN FROM 
ANY OR ALL OF THE FOLLOWING SOURCES: 
(1)TWENTY PERCENT (20%) OF THE TRAVEL TAX 
AND AIRPORT DEPARTURE TAX COLLECTIONS; 
(2) TEN PERCENT (10%) OF ANY FUNDS COLLECTED 
BY THE SUGAR REGULATORY ADMINISTRATION 
OF THE PHILIPPINES COCONUT AUTHORITY 
(3)TEN PERCENT ( 10%) OF THE NET INCOME OF THE 
DEVELOPMENT ACADEMY OF THE PHILIPPINES 
(4)PORTIONS OF THE OVERSEAS WELFARE FUND TO 
BENEFIT THE DEPENDENTS OR CHILDREN OF 
OVERSEAS WORKERS; 
(5)ANY OTHER LUMP SUM APPROPRIATIONS OR 
COLLECTIONS UNDER THE SUPERVISION AND 
CONTROL OF THE OFFICE OF THE PRESIDENT. 
PROVIDED, 
FINALLY 
THAT 
THE 
TOTAL 
AMOUNT 
MADE 
AVAILABLE TO CARRY OUT THE PURPOSES OF THIS ACT SHALL 
NOT EXCEED ONE BILLION PESOS (Pl,OOO,OOO,OOO,) 
FOR FISCAL 
YEAR 2001. THEREAFTER, SUCH AMOUNT AS MAY BE NECESSARY 
FOR ITS CONTINUED IMPLEMENTATION SHALL BE INCLUDED IN 
THE ANNUAL GENERAL APPROPRIATIONS ACT. 
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Sec. 12. Penalties. In case of any violation of the provisions of this Act 
or the rules and regulations promulgated pursuant thereto by an institution, the 
Department of Education (DepED) or the Commission on Higher Education, 
upon the recommendation of the State Assistance Council, may bar the 
institution from participating in or benefiting from the programs of this Act, 
and from other programs of the DepED and the CHED, without prejudice to 
administrative and criminal charges as may be filed against the school and or 
its responsible officers under existing laws. 
Sec. 13. The Senate Committee on Education and House Committee on 
Basic Education shall oversee the implementation of the Expanded Voucher 
System in coordination with the State Assistance Council. The State Assistance 
Council shall submit to Congress an annual accomplishment report on the 
implementation of this Act. 
Sec. 14. The State Assistance Council led by the Department of 
Education, Commission on Higher Education and Technical Education and 
Skills Development Authority shall formulate rules and regulations necessary 
for the smooth implementation of this Act within a period of sixty (60) days 
from the day of its effectivity. 
Sec. 15. Repealing Clause. All laws and decrees and such letters of 
instruction, rules and regulations or parts thereof which are inconsistent with 
this Act are hereby repealed or modified accordingly. 
Sec. 16 Separability Clause. If any provision of this Act is declared 
unconstitutional, the same shall not affect the validity and effectivity of the 
other provisions not affected thereby. 
Sec. 17. Effectivity Clause. This Act shall take effect immediately upon 
its publication in at least two newspaper of general circulation. 
Approved, 
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