Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _______ 
---------------------------------------------------------------------------------------------------------------- 
Introduced by HONORABLE ERNESTO “ERNIX” M. DIONISIO, JR. 
---------------------------------------------------------------------------------------------------------------- 
AN ACT 
ESTABLISHING THE COLLEGE LIVING EXPENSES FINANCING (CLEF) 
PROGRAM, MANDATING THE NATIONAL GOVERNMENT TO SET UP A LOAN 
GUARANTEE FUND ON STUDENT LOANS TO BE PROVIDED BY THE 
DEVELOPMENT BANK OF THE PHILIPPINES (DBP) AND THE LAND BANK OF 
THE PHILIPPINES (LBP), APPROPRIATING FUNDS THEREFOR AND FOR 
OTHER PURPOSES 
EXPLANATORY NOTE 
 Section 1, Article XIV of the 1987 Constitution states: “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.   
Likewise, Section 5(1), Article XIV of the 1987 Constitution states: “The State 
shall consider regional and sectoral needs and conditions and shall encourage local 
planning in the development of educational policies and programs. The realities in the 
ground are still far from ideal: access to tertiary education remains to be unreachable 
to some sectors in our nation, given their financial position. Despite the introduction of 
scholarships and grants, there are still day-to-day expenses that limit students’ full 
attention to precious resources given for their disposal.    
This bill seeks to introduce a loan program for students’ living expenses, in 
order to nurture the future working citizens of this country. In view of this, the passage 
of this bill is highly sought.  
October 6, 2022
1:14 pm
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Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _______ 
---------------------------------------------------------------------------------------------------------------- 
Introduced by HONORABLE ERNESTO “ERNIX” M. DIONISIO, JR. 
---------------------------------------------------------------------------------------------------------------- 
AN ACT ESTABLISHING THE COLLEGE LIVING EXPENSES FINANCING (CLEF) 
PROGRAM TO SUPPORT HIGHER STUDIES OF FILIPINO STUDENTS OF GOOD 
ACADEMIC STANDING, MANDATING THE NATIONAL GOVERNMENT TO SET UP A 
LOAN GUARANTEE FUND ON STUDENT LOANS TO BE PROVIDED BY THE 
DEVELOPMENT BANK OF THE PHILIPPINES (DBP) AND THE LAND BANK OF THE 
PHILIPPINES (LBP), 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. Short Title. - This Act shall hereinafter be referred to as the "College 
Living Expenses Financing (CLEF) Act”. 
SECTION 2. Declaration of Policy. - It is the declared policy of the State to protect 
and promote the rights of all students to quality education at all levels. Towards the end, it 
shall hereby be the policy of the State to ensure that measures are enacted that will promote 
accessibility of higher education to all. T 
SECTION 3. Coverage. - The CLEF program shall be made available to all Filipino 
students who are either enrolled at the time of the effectivity of the Act, or admitted to enroll at 
any time thereafter, in courses leading to a bachelor's degree in any higher educational 
institution accredited by the Commission on Higher Education (CHED). 
SECTION 4. Nature of the Financial Assistance. – The CLEF Program is a long-
term personal loan program designed to provide for the living expenses of Filipino college 
students. Living expenses shall cover, but not limited to, the following: 
(a) Board and lodging;
(b) Living allowance;
(c) Transportation costs;
(d) Food expenses;
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(e) Uniforms and personal clothing;  
(f) Books and required supplies;  
(g) Internet and digital connectivity expenses;  
(h) Other miscellaneous expenses  
The loan shall be provided by and disbursed through the Land Bank of the Philippines 
and Development Bank of the Philippines. Each eligible student shall be entitled to a maximum 
loan amount of Php 50,000 per semester or enrollment and a maximum of Php 400,000 
allowing for up to five (5) years of college enrollments. The maximum loan amounts set forth 
therein may be adjusted every five (5) years on the basis of improvements in the standards of 
living, as may be determined by the disbursing financial institutions in consultation with the 
CHED and the Philippine Statistics Authority (PSA). The loan shall have a maximum term of 
twenty-five (25) years, an interest rate of lower than the prevailing interest rate subject to the 
discretion of the disbursing financial institutions, and a grace period on principal and interest 
payments so that amortizations shall start one (1) year from the date of graduation or the end 
of the last semester of enrollment, whichever is later. The administration of the CLEF Program 
shall be a shared responsibility of the (1) CHED, which shall process and endorse the loan 
application requirements of eligible students, and (2) the disbursing financial institutions, which 
shall release the amounts based on an approved disbursement program agreed with the 
student.  
SECTION 5. Credit Guarantee by National Government - In order to cover for the 
risk exposures of the disbursing banks, the CLEF Guarantee Fund is hereby created within 
the Philippine Guarantee Corporation (PHILGUARANTEE), which shall be funded by yearly 
appropriations from the national government in the amount of ten billion pesos 
(P10,000,000,000.00) over the next ten (10) years to be deposited with the National Treasury. 
The endorsement of the Unified Student Financial Assistance System for Tertiary Education 
(UniFAST) Board shall be sufficient basis for the credit guarantee for the specific beneficiary 
student.  
SECTION 6. Tracking and Monitoring. - Consistent with its mandate under Republic 
Act No. 10678 and Republic Act No. 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 good 
student performance. Sections 11, 12, and 13 of Republic Act No. 10687 shall also apply to 
the CLEF Program. 
For purposes of tracking after graduation or leaving college without graduating, Section 15 (r) 
of Republic Act No. 10687 shall also apply to CLEF beneficiaries as part of the loan contract 
that they shall sign.  
SECTION 7. Implementing Rules and Regulations. - Within thirty (30) days from the 
effectivity of this Act, the CHED and the UniFAST Board, in consultation with the local 
government leagues, and officials from the Bureau of Treasury, LandBank, Development Bank 
of the Philippines, and other stakeholders, shall promulgate the Implementing Rules and 
Regulations necessary for the proper implementation of this Act.  
SECTION 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.  


SECTION 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.  
SECTION 10. Repealing Clause. - All laws, executive orders, presidential decrees, 
implementing rules and regulations inconsistent with this Act are hereby repealed or modified 
accordingly. 
SECTION 11. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in two newspapers of general circulation. 
Approved,