EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

iced by Representative Rufus |

zi 7" 4859

House Bill No.

EXPLANATORY NOTE

Under Article XIV, Section 1 of the 1987 Constitution, it states 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”.

With the passage into law of Republic Act 10687 or the Universal Access to Quality Tertiary
Education Act, there is now free tuition and exemption of all other fees for students of state
colleges and universities.

While this is a very huge step in making quality education accessible to all, we must be
reminded that the expenses that students have to bear does not only cover tuition and fees.
There are other expenses that come with studying in college especially for those studying in
colleges and universities in other provinces or cities, not where they live. There are also
‘expenses for books, supplies and sometimes uniforms.

In view of the foregoing, immediate approval of this measure is eamestly requested,

Ml

RUFUS B. RODRIGUEZ


EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Rodriguez

d by Representativ

4859

House Bill No.

AN ACT

TO ESTABLISH THE COLLEGE LIVING EXPENSES FINANCING (CLEF) PROGRAM TO
SUPPORT HIGHER STUDIES FOR HUNDRED OF THOUSANDS MORE FILIPINO
STUDENTS OF GOOD ACADEMIC STANDING, MANDATING THE NATIONAL
GOVERNMENT AND LOCAL GOVERNMENT UNITS TO SET UP LOAN GUARANTEE
FUNDS ON STUDENT LOANS TO BE PROVIDED BY BANKS, FINANCIAL
INSTITUTIONS AND OTHER CREDIT PROVIDERS FOR THE CLEF PROGRAM,
[APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

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

SECTION 1. Title. - This Act shall hereinafter be referred to as the “College Educational
Expenses Financing (CLEF) Act.”

SEC. 2. Declaration of Policy. - As prociaimed in R.A. 10931: “quality education is an
inalienable right of all Filipinos and it is the policy of the State to protect and promote the
fights of all students to quality education at all levels. Therefore, the State shall take
appropriate steps to make such education accessible to all.”

R.A. 10687 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 the poor, thereby promoting equitable and Rationalized Access by
poor Filipinos to quality Tertiary Education.”

In furtherance of these policies, it is further declared the policy of the State to
promote the capacities of all its 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.

SEC. 3. Coverage. - The CLEF program shall be made available to all Filipino students who
are either currently enrolled at the time of the effectivity of the Act, or admitted to enrol at any
time thereafter, in courses leading to a bachelor’s degree in any higher educational
institution (HEN) accredited by the Commission on Higher Education (CHED)

SEC. 4. Nature of the Financial Assistance. — The CLEF Program is a long term personal
joan program designed to provide for the living expenses of Filipino college students. Living
expenses shall cover, but not limited to, the following
* board and lodging
pocket money
transportation cost
food expenses
uniforms and personal clothing
books and supplies
other miscellaneous expenses


Each eligible student shall be entitled to a maximum loan amount of Php 50,000 per
Semester or enrolment and a maximum of P400,000 allowing for up to five year of college
enrolments.

The loan shall have a maximum term of twenty five (25) years, an interest rate of 6%
and a grace period on principal and interest payments so that amortizations shall start one
year from the date of graduation or the end of the last semester of enrolment, whichever is
later.

The loan shall be provided by and disbursed through private or government banks,
financial service entities accredited with the Bangko Sentral ng Pilipinas (BSP) and/or
government financial institutions, including the Social Security System (SSS), Government
Service Insurance System (GSIS), or Home Development Mutual (Pag-IBIG) Fund

The administration of the CLEF Programs shall be a shared responsibility of the (1)
CHED which shall process and endorse the loan application requirements of eligible
students, (2) the financial institutions — which shall release the amounts based on an
approved disbursement program agreed with the student, and (3) the collecting agent —
which can be a bank, a financial service institutions, financial technology service (FinTech)
accredited with the Bangko Sentral, the SSS, GSIS or Pag-IBIG

SEC. 5. Credit Guarantee by National Government and LGUs. ~ In order to encourage
the banks and financial institutions to provide the needed resources for the Program, the
CLEF Guarantee Fund is hereby created, which shall be funded by yearly appropriations
from the national goverment in the amount of ten billion pesos (P10,000,000,000) over the
next ten years to be deposited with the National Treasury. In like manner, local government
units (LGUs), including provinces, cities, municipalities and barangays, shall set aside
minimum of 2% of their intemal Revenue Allotments (IRA) as additional guarantee support
for CLEF loans to students from their respective constituencies, to be deposited with the
Land Bank or Development Bank of the Philippines (DBP). The guarantee funds may
support loans to the students up to five times of its nominal value. The endorsement of the
UniFAST Board and/or the LGU concerned shall be sufficient basis for the credit guarantee
for the specific beneficiary students.

SEC. 6. Tracking and Monitoring. — Consistent with its mandate under R.A. 10687 and
R.A. 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 food student performance,
Sections 11, 12 and 13 of R.A. 10687 shall also apply to the CLEF Program

For purposes of tracking after graduation or leaving college without graduating,
Section 15 (1) of R.A. 10687 shall also apply to CLEF beneficiaries as part of the loan
contract that they shall sign.

SEC. 7. Implementing Rules and Regulations. — Within thirty (30) days from the effectivity
of this Act, the UniFAST Board shall consult with the local government leagues, and officials
from the Bureau of Treasury, Bankers Association of the Philippines, Land Bank,
Development Bank of the Philippines, SSS, GSIS, Pag-IBIG, and other stakeholders and
promulgate the Implementing Rules and Regulations necessary for the proper
implementation of this Act.

SEC. 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.

SEC. 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.


SEC. 10. Repealing Clause. - All laws, executive orders, presidential decrees
Implementing Rules and Regulations inconsistent with this Act are hereby repealed or
modified accordingly.

SEC. 11. Effectivity. - This Act shall effect fifteen (15) days after its publication in the
Official Gazette or in two newspapers of general circulation.

Approved