Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO, 9603 _

Introduced by HONORABLE LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

“Ignorance is servitude, because as a man thinks, so he is;
a man who does not think for himself and allows himself to be
guided by the thought of another is like the beast led by a halter.”
- Jose Rizal

The mission of education, according to Jose Rizal, is to elevate the country to
the highest seat of glory and develop the people's mentality. Rizal further claimed
that education is the foundation of society and a pre-requisite for social progress.

The importance of education cannot be overemphasized; it is ingrained in the
law of the land— Section 1, Article 14 of the 1987 Constitution provides that 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”.
However, access to education becomes more and more elusive for an average
Filipino especially upon entering college. Every year, fewer high school graduates
are going to college. For a number of reasons, higher education is proving to be a
less than ideal life choice.’

A country which had made a high degreee of social and economic
commitment to education as the Philippines must at some point reexamine the
nature of that commitment very closely.’ Glaring inequity in access to higher
education continues to impede the Filipinos’ right to education at this pivotal level.
According to the 2013 Annual Poverty and Indicator Surver (APIS), half of college-
age youngsters were unable to pursue higher education due to financial constraints
or the need to work and earn for the family. More than 26 million Filipinos remain
poor with almost half, or a little more than 12 million, living in extreme poverty.

| Hemandez, Butch (2017, May 04. The real cost of colege education. The Philippine Daly Inquirer. Reteved
from http:/opinion inquirer net87421/the-real-cost-of-college-education#ixzz4g68HpFrV

* Excerpt from “Higher Education in the Philippines,” Special Area Report, Presidential Commission to Survey
Education in the Philippine Education, December 1970.
* Yap, DJ. 12M Filipinos living in extreme poverty. Philippine Daily Inquirer. Philippine Daily Inquirer 11:55 PM March 18,
2016. Available URL: http:/Inewsinfo. nquirer.ne/775062/12m-filipinos-living-in-extreme-povertyfixzz4™MIQKYEt



Higher education is currently greatly privileged, with financial burdens serving
to be a limiting force for many potential students. The ultimate tool to increase the
abundance of educational opportunities begins at lowering if not removing entirely,
the tuition for higher education.

This bill seeks to provide tuition subsidies and financial assistance to students
in state universities and colleges private higher institutions and technical and
vocational institutions. It is a re-filed version of Senate Bill No. 1304 prepared jointly
by the Committees on Education Arts and Culture and Finance with Senators Recto,
Villanueva, Ejercito, Aquino IV, Gatchalian,Pangilinan, Angara, Legarda as authors.

The passage of this bill shall translate to a brighter future for millions of
underprivileged but deserving students. Further, the Affordable Higher Education for
All Act shall complement other existing policies and laws on scholarship programs
such as the Iskolar ng Bayan Act, streamlining the Student Financial Assistance
Program (StuFAP) found in the United Student Financial Assistance System for
Tertiary Education (UNIFAST) in the UNIFAST Law, and other scholarships offered
by the Commission on Higher Education, Department of Science and Technology,
Department of National Defense, among other agencies.

The immediate approval of this bill is earnestly sought.

LUIS JUND “| YY” VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

5602

HOUSE BILL NO.

AN ACT ACCELERATING UNIVERSAL ACCESS TO TERTIATRY EDUCATION BY
PROVIDING TUITION SUBSIDY AND FINANCIAL ASSISTANCE TO STUDENTS
ENROLLED IN STATE UNIVERSITIES AND COLLEGES (SUCs), PRIVATE HIGHER
EDUCATION INSTITUTIONS (HEIs) AND TECHNICAL-VOCATIONAL
INSTITUTIONS (TVis) AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Title. — This Act shall be known as the "Affordable Higher
Education for All Act”

SECTION 2. Declaration of Policy. — |t is hereby declared that universal access
to quality education is an inalienable right of the Filipino. Therefore, it shall be the policy
of the State to make higher education accessible to all, especially to the financially
disadvantaged but deserving students by recognizing the complementary roles of public
and private higher education institutions (HEls) and technical-vocational institutions
(TVs) in delivering quality education. Towards this end, the State shall renew its
constitutionally mandated duty to make education its top budgetary priority by providing
tuition subsidy and financial assistance to students in State Universities and Colleges
(SUCs), private HEis and TVIs.

SECTION 3. Definition of Terms. — As used in this Act, these terms shall mean:

(a) Cost of Tertiary Education refers to (1) Tuition, and Other School
Fees, (2) Educational Expenses, and (3) Cost of living allowance;
(b) Educational Expenses refer to expenses related to the education of a

student, such as books, school supplies, and electronic devices
necessary foreducation, but excluding tuition and miscellaneous and
Other School Fees;

©) Higher Education refers to the stage of formal education, or its
equivalent,requiring completion of secondary education and covering
programs of study leading to bachelor and advanced degrees;

(a) Higher Education Institution (HE!) refers to an institution of higher
learning, primarily offering bachelor and advanced degree programs;

1


(e)

(9)

(h)
(i)

@

(k)

0)

(m)

(n)

(0)

Other School Fees refer to those fees which cover other necessary
costs supportive of instruction, including, but not limited to, medical
and dental, athletic, library, laboratory, and miscellaneous fees;

State Universities and Colleges (SUCs) refer to public HEIs
established by national laws which are financed and maintained by the
national government, and are governed by their respective
independent boards of trustees or regents;

Technical-Vocational Education and Training (TVET) refers to the
post-secondary education or training process which involves, in
addition to general education, the study of technical and related fields
and the acquisition of practical skills relating to occupations in various
sectors, comprising formal (organized programs as part of the school
systems) and nonformal (organized classes outside the school system)
approaches;

Technical-Vocational Institutes (TVIs) refer to learning institutions
offering post-secondary TVET;

Tertiary Education refers to the stage of education following the
secondary cycle which subsumes post-secondary nondegree diploma,
TVET, and Higher Education programs;

Tuition Fee refers to the fee representingdirect costs of instruction,
training and other related activities and for the students’ use of the
instruction and training facilities;

Unified Student Financial Assistance System for Tertiary
Education (UniFAST) refers to the harmonized, state-run and
administered system of Higher Education and technical-vocational
Scholarships, Grants-in-Aid, Student Loans, and other modalities of
StuFAP created by Republic Act No 10867;

Student Financial Assistance Program (StuFAP) refers to a system
of Scholarships, Grants-in-Aid, Student Loans, subsidies and other
incentives which are or shall be made available to eligible students;
Grant-in-Aid refers to a modality of financial assistance to poor but
eligible students which generally requires a minimum level of
competence to complete Tertiary Education;

Scholarship refers to a modality of financial assistance given to
eligible students on the basis of merit and/or talent, such as laudable
academic performance, and special technical proficiencies and skills
and intellectual pursuits of a Scholar that give rise to research and
development, and innovations as well as other creative works;
Student Loan refers to a modality of student financial assistance
consisting of short-term or long-term loans which shall be extended to
students facing liquidity problems, regardless of economic status,
which shall be paid by the student, parents, guardians, or co-makers.



SECTION 4. Eligibility to the Full Tuition Subsidy. — All Filipino citizens who
are either currently enrolled at the time of effectivity of this Act, or shall enroll at any
time thereafter, in courses in pursuance of a bachelor's degree, certificate degree, or
any comparable undergraduate degree in any SUC shall qualify for a full tuition subsidy;
Provided, That they meet the admission requirements of the SUC; Provided further,
That all SUCs shall create a mechanism to identify students with the financial capacity
to be excluded from receiving tuition subsidy or to enable them to make a donation to
the school.

SECTION 5. Exceptions to the Full Tuition Subsidy. — The following are
ineligible to avail of the full tuition subsidy in SUCs:

(a) Persons who have already attained a bachelors degree or equivalent degree
from any higher education institution, whether public or private;

(b) Students who fail to complete their degree and/or non-degree programs within a
year after the period prescribed in their program;

(c) Persons who have been dishonorably discharged from any higher education
institution, whether public or private, for any reason other than financial difficulty
in paying tuition and other fees; or

(d) Persons who have the financial capacity to shoulder the cost of Tertiary
Education.

SECTION 6. SUC Tuition Subsidy Fund. - The SUC Tuition Subsidy Fund,
hereinafter referred to as the Fund, is hereby established. The Fund shall be used
solely for the purpose of implementing the full tuition subsidy under the provisions of
this Act. Tuition for units enrolled by persons eligible for the tuition subsidy under the
provisions of this Act, payable to SUCs, shall be sourced from this Fund.

SECTION 7. Administration of the Fund. — The Fund shall be administered by
the Commission on Higher Education (CHED), which shall have the following powers
and functions:

(a) Manage and administer the Fund;

(b) Devise a reporting mechanism to be implemented by the SUCs which will detail
the exact amount of tuition subsidy availed of by persons eligible for the full
tuition subsidy under this Act;

(c) Formulate and implement an efficient and transparent mechanism to ensure the
payment of the tuition subsidy, utilizing money from the Fund, to the respective
SUCs, pursuant to this Act;

(d) Resolve and mediate disputes concerning the ineligibility or disqualification of
persons from the full tuition subsidy under the provisions of this Act or any other
provision of this law;

(e) Develop and utilize technology and data systems for collecting and analyzing
data of all eligible students under this Act and further ensure that entries therein
are accurate and up-to-date; and

(f) Any other powers or functions necessary for the implementation of the provisions
of this Act.

3


SECTION 8. Requirements for SUCs. - SUCs are hereby mandated to fulfill the
following before accessing the Fund:

(a) Establish a qualifying mechanism, which shall be meritocratic and equitable. This
shall include but not be limited to a qualifying examination and an affirmative
action mechanism for financially disadvantaged students;

(b) Determine and publish the maximum number of students the SUC can
accommodate per campus anddegree program. For the _ initial
implementation of this Act, the maximum number of students SUCs may accept
shall be equivalent to the total number of students that were enrolled in the
school year prior to the effectivity of this Act. For subsequent years, SUCs may
increase their number of students subject to conditions set by and upon the
approval of CHED;

(c) Submit the following documents to assist the CHED in implementing this Act:

|. Previous enrollment rate, student demographics and other relevant
information;

ji. Graduation rate, performance in previous licensure examinations,

and employability rate of graduates;

ili, Gross tuition receipts;

iv. Teachers’ welfare and training profiles; and

v. Other educational quality indicators, including but not limited to

physical learning infrastructures, teacher-to-student ratio and

student housing

(d) Formulate and submit to CHED and to the committee on education of the senate
and the committee on higher and technical education of the house of
representatives a detailed SUC Development Plan updated every ten (10) years,
which shall include plans for facilities and infrastructure development and
expansion.

The submissions to CHED shall be subject to the Commission's determination of
completeness. Provided, That CHED shall have the right to request for additional
information from the SUCs. Provided further, that any plans of expansion shall be
approved and defended before CHED and Congress during the SUCs' budget hearing.

SECTION 9. Tuition Report. - The President of each SUC shall submit to the
CHED, within five (5) days after the last day of late registration for each semester, a
report detailing the names of persons eligible for the full tuition subsidy in their
institution, as well as the amount of tuition due based on the number of units enrolled.

SECTION 10. Payment from the Fund. — The CHED shall ensure the full
payment of tuition due to the state university or college, as reported under this Act, no
later than thirty (30) days after the submission of the report to the CHED; Provided, That

4


the CHED shall reserve the right to withhold or disallow the payment of any reported
fees which are perceived to be anomalous or irregular until further investigation has
been conducted,

SECTION 11. Strengthening Student Financial Assistance Programs
(StuFAP).- The CHED, through UniFAST, shall strengthen all scholarships, grants-in-
aid, student loans, subsidies and other incentives, to other educational expenses and
cost of living allowance that will be incurred by students pursuing higher education in
SUCs and private HEIs and TVIs. StuFAPs shall also be made available to cover the
cost of tertiary education, fully or partially, to students who wish to pursue tertiary
education in other HEls or TVIs.

SECTION 12. Tuition subsidy and financial assistance for students in
private HEls and TVIs. — Students who wish to enroll in private HEIs and TVIs shall be
covered by the appropriate STuFAPs in such modalities where they qualify as may be
determined by the uniFAST board. The subsidy up to the amount approved by the
uniFAST board shall cover tution fees and/or any additional student financial assitance
to cover for the other costs of education in the private HEI and TVI of choice, subject to
its admission policies. Provided, that the amount of tuition subsidy and/or student
financial assistance shall be based on the guidelines set forth by the uniFAST board
and on the annual budgetary appropriation for this purpose. Provided further, that the
conditions stipulated under Section 5 of this Act shall also apply to students qualified
under this section.

SECTION 13. Appropriations. — The amount necessary to effectively carry out
the provisions of this act shall be included in the annual General Appropriations Act.

SECTION 14. Implementing Rules and Regulations. — Within sixty (60) days
from the effectivity of this Act, the CHED shall promulgate the implementing rules and
regulations necessary for the implementation of this Act.

SECTION 15. Separability Clause.— Should any provision herein be
declared unconstitutional, the same shall not affect the validity of the other provisions of
this Act.

SECTION 16. Repealing Clause. - All laws, decrees, orders, rules, and
regulations or other issuances or parts inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.

SECTION 17. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) newspapers of general circulation in the
Philippines.

Approved,

w