Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

2570

House Bill No. _™

Introduced by Hon. Sol Aragones

EXPLANATORY NOTE

The Constitution, Article 2, Section 13, provides:

The State recognizes the vital role of the youth in nation-building and
shall promote and protect their physical, moral, spiritual, intellectual, and
social well-being. It shall inculcate in the youth patriotism and nationalism,
‘and encourage their involvement in public and civic affairs.

The Commission on Higher Education (CHEd) recently approved the increases for

colleges and universities. The decision permitting higher educational institutions (HEIs) to
raise school fees came following the 413th regular CHEd meeting wherein commissioners
approved the figures verified and presented by the Office of Student Services. CHEd
Chairperson Patricia Licuanan was quoted as saying that the average tuition hike per unit for
school year 2013-2014 is P37.45 or 8.5 percent nationwide, which is the lowest percentage
increase in the past 10 years. Out of the 1,068 private elementary and high schools that
applied for a tuition increase this year, the Department of Education (DepEd) reported that
903 were approved, 92 were disapproved and 70 are pending approval, with the increases

averaging five to 10 percent.

Itis amidst this backdrop of the continuously rising cost of education that the need for
programs to assist students in financing their education deserves a stronger backing from the
government. There is therefore a need to increase the support for the student financial
assistance program of the CHEd to help out college students pay for their tuition fees. Under
the Study Now, Pay Later Plan, deserving students are cligible to apply for a student loan that
they can repay once they are gainfully employed after graduation. This bill strengthens that


program by mandating a minimum annual increase in its coverage and by making it easier for
the student debtor to repay his or her student loan.

hen

|ON. SOL ONES
Representative, 3 District of Laguna



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
‘SIXTEENTH CONGRESS

First Regular Session

House Bill No._295'70

Introduced by Hon. Sol Aragones

ee

AN ACT
AMENDING SECTION 10 OF REPUBLIC
ACT NO. 8545

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 10 of Republic Act No. 8545, also known as the ‘Expanded
Government Assistance to Students and Teachers in Private Education Act' is hereby
amended as follows:

See. 10. Education Loan Fund. ~ (a) ‘Study Now, Pay Later Plan.'~

‘There is hereby created a special fund to be known as the Students’ Loan Fund

to be administered by the CHED and the TESDA or upon delegation by the

CHED by the Student Loan Fund Authority created under Republic Act No.

6014 which is hereby reinstituted pursuant to the terms of the same Republic

‘Act which shall be used to finance educational loans to cover matriculation

and other school fees and educational expenses for book subsistence, and

board and lodging.

"(b) Amounts covering payments for tuition and other school fees shall
be paid directly to the school concerned.
"(© Any loan granted under this Sec. shall be paid by the student-

debtor after he has finished the course or profession for which the proceeds of

the Joan was expended, but only after a period of [two (2)] THREE (3) years

from the time he has acquired an employment: Provided, however, That


19
20
21
22

23
24
25
26
27
28
29

30

interest at the rate of not more than [six] FIVE percent {(6%)] 5% per annum.
shall accrue on the balance thereof. THE STUDENT-DEBTOR IS OBLIGED
TO PAY CHED THE AMOUNT OF LOAN AVAILED OF ONLY THREE
(3) YEARS AFTER ACQUIRING AN EMPLOYMENT. IF HE/SHE HAS
NOT ACQUIRED GAINFUL EMPLOYMENT, THEN THE THREE (3)
YEAR PERIOD WILL NOT START TO RUN.

(D) THE STANDARDS FOR THE GRANT OF THE LOAN SHALL
INCLUDE, AMONG OTHERS, THE INCOME BRACKET OF THE
FAMILY OF THE STUDENT, THE INCLUSION OF THE COURSE IN
THE CHED PRIORITY COURSE LIST, AS WELL AS THE GRADE
POINT AVERAGE OF THE STUDENT, WHICH SHOULD AT LEAST BE
EQUIVALENT TO A GRADE OF EIGHTY (80%) IN A SCALE OF 100.

(E) THE CHED SHALL INCREASE THE NUMBER OF STUDENT-
RS BY AT LEAST FIVE (5%) EVERY YEAR.

(F) THE STUDENT DEBTOR MAY PAY DIRECTLY TO ANY
CHED REGIONAL OFFICE OR TO THE CHED-CENTRAL OFFICE
THROUGH THE OFFICE OF STUDENT SERVICES.

[@] (G Social Security Fund.- The Social Security System shall

make available low interest educational loans to its members and to private

educational institutions for school buildings and/or improvement of their

plants and facilities.

SECTION 2. Separability Clause. - If any provision or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain

valid and subs

SECTION 3. 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.


1 SECTION 4. Effectivity Clause. — This Act shall take effect fifteen (15) days after its

2 publication in at least two (2) newspapers of general circulation.