FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
S.B. No. 2584 
I.' 
. 
. 
Introduced by SENATOR VILLAR 
EXPLANATORY NOTE 
"Without education and liberty, 
which are the soil and the sun of man, 
no reform is possible, 
no measure can give the result desired." 
- Jose Rizalr 
10 
!lCr 17 Pi;l i1 
(Indolence of the Filipinos-La Solidaridad) 
The aim of education is to equip the young with the knowledge in order for them to 
become meaningful members of society. The youth plays a vital role in in nation-building and 
an educated society will translate to national progress. However, many students are struggling to 
stay in school due to financial difficulties. About 6 million Filipino children had dropped out of 
school in 2009. 30% of the 91 million inhabitants in the Philippines are under 18: almost 25% of 
them never finish their studies. Poverty is largely to blame along with the lack of awareness 
among the population of the importance of education 1. 
The problem regarding our youth dropping out of school may be resolved, with the help 
of government in furtherance of it's declared national policy to 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 ale. 
These steps can be in the form of system of scholarship grants, 
student loan programs, subsidies, and other incentives which shall be available to deserving 
students in both public and private schools, especially the underprivileged.3 . 
This legislation seeks to lighten the financial burden of underprivileged college students 
by providing for discounts on various fees which relate to their education so that the qualified yet 
financially unable may avail of quality instruction to empower them to think for themselves and 
improve their lives, for the betterment of our country. 
In view of the foregoing, the approval of this initiative is earnestly sought. 
MANNYVIL AR 
1 http://www.asianews.it/news-en/Philippines:-over-6-million-young-people-drop-out-of-schoo16787.htm I 
2 Section 1, Article XIV, 1987 Philippine Constitution 
, Section 2 (3), Article XIV, 1987 Philippine Constitution 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
S.B.No. 2564 
Introduced by SENATOR VILLAR 
AN ACT 
~,Ef'" 
Of"f~CE 0 ~ TFl 
STRENGTHENING THE ASSISTANCE PROGRAM 
TO UNDERPRIVILEGED TERTIARY STUDENTS 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Declaration of Policy. - It is the policy of the State to prioritize quality 
education and take appropriate steps to make such education accessible to all. 
SEC. 2. Definition of Terms. - As used in this Act, the following words, terms and 
phrases shall be defined as: 
(a) 
Underprivileged college students refer to Filipino students enrolled in the tertiary 
level whose parents have a gross annual income which is considered as the poverty 
threshold level as defined and updated by the National Economic and Development 
Authority (NEDA). 
It also covers Filipino college students who opt to take part-time 
jobs to subsidize their education. 
(b) 
Discounts refer to the amount deducted or counted off from the cost of goods 
under basic services and from fees to be collected on education services. 
(c) 
Basic services refer to basic necessities such as food for snacks and meals and 
medicines. 
(d) 
Education services refer to education-related expenditures such as tuition, 
miscellaneous and other school fees, books and school supplies. 
SEC. 3. Discounts for Underprivileged College Students. - Underprivileged college 
students shall be entitled to the following: 
(a) . 
On Food Establishments. - A five percent (5%) discount shall be granted to 
underprivileged college students by food establishments such as food chains, canteens 
and restaurants anywhere in the country: Provided, That private food establishments may 
claim the COst as allowable tax deduction from the gross income in the computation of the 
income tax, in accordance with the provisions of the National Internal Revenue Code of 
1997, as amended; 
(b) 
On Medicines and Health Services. c- A five percent (5%) discount shall be 


granted to underprivileged college students by pharmacies or drug stores or hospitals and 
medical institutions anywhere in the country: Provided, That these pharmacies or drug 
stores or hospital and medical institutions may claim the cost as allowable tax deduction 
from the gross income in the computation of the income tax, in accordance with the 
provisions of the National Internal Revenue Code of 1997, as amended; 
(c) 
On Textbooks and School Supplies. - A five percent (5%) discount shall be 
granted to underprivileged college students by establishments anywhere in the country 
that sell reference books for college and school supplies: Provided, That these 
establishments may claim the cost as allowable tax deduction from the gross income in 
the computation of the income tax, in accordance with the provisions of the National 
Internal Revenue Code of 1997, as amended; and 
(d) 
On Tuition Fees, Miscellaneous and Other School Fees. - A five percent (5%) 
discount shall be granted to underprivileged college students by public and private 
schools where they are enrolled anywhere in the country, without prejudice to their right 
in availing themselves of other educational assistance given by the school and the 
government such as the "Study Now, Pay Later Plan" under Republic Act No. 6728: 
Provided, That the schools may claim the cost as allowable tax deduction from the gross 
income in the computation of the income tax, in accordance with the provisions of the 
National Internal Revenue Code of 1997, as amended. 
SEC. 4. Limitations. -
The right of any underprivileged college student to avail 
himsel£'herself of the discounts under this Act shall not apply if: 
(a) 
He/She fails for one (l) semester in the majority of the academic subjects in 
which he/she has enrolled during the course of hislher study, unless such failure is due to 
some valid cause beyond hislher control; 
(b) 
He/She fails to finish hislher course within two (2) years after the year within 
which he/she should have graduated; 
(c) 
He/She stops schooling for one (1) school year, unless such is due to some valid 
cause beyond hislher control; and 
(d) 
He/She is convicted of any crime under the Revised Penal Code. 
SEC. 5. Role o/the Commission on Higher Education (CHED). - The CHED shall be in 
charge of determining the qualified beneficiaries under this Act through its Office of Student 
Services (OSS). The CHED Chairman shall include in the regular functions of the OSS the 
following additional functions: 
(a) 
To plan, implement and monitor yearly work programs, evaluate and submit 
annual reports in pursuance of the objectives of this Act; 
(b) 
To screen applicants, receive documentary proof, and identify who are the eligible 
underprivileged college students based on the provisions of this Act; 
(c) 
To closely coordinate with the NEDA in determining the income brackets of 
Filipino families for the purpose of identifying underprivileged college students; 


(d) 
To issue identification cards which shall be valid anywhere in the country as 
proof of he eligibility of the underprivileged college students to avail themselves of the 
discounts; 
(e) 
To maintain and regularly update, on a quarterly basis, the list of underprivileged 
college students who avail themselves of the discounts and to review, evaluate and assess 
their academic standing; 
(f) 
To cancel the identification cards issued for those disqualified under Section 5 of 
this Act; 
(g) 
To provide information to the affected establishments under Section 4 of this Act 
for any question regarding the eligibility of any underprivileged college student claiming 
the discounts through the CHED website; 
(h) 
To monitor the extent of implementation of this Act and to coordinate with the 
concerned agencies regarding the imposition of penalties on violators of this Act; and 
(i) 
To perform such other functions as may be determined by the CHED Chairman in 
the implementation of this Act. 
SEC. 6. Tax Incentives. - Discounts granted by establishments to underprivileged college 
students under this Act shall be treated as allowable deduction from the gross income in the 
computation of the income tax, in accordance with the provisions of the National Internal 
Revenue Code of 1997, as amended. 
SEC. 7. Implementing Rules and Regulations. - The CHED, in coordination with the 
NEDA, the Department of Social Welfare and Development (DSWD), the Department of Health 
(DOH), the Department of Trade and Industry (DTI), the Department of Finance (DOF), such 
other relevant agencies and civil society groups and youth organizations and relevant 
stakeholders shall issue the implementing rules and regulations to carry out the objectives of this 
Act within thirty (30) days after this Act takes effect. 
SEC. 8. Penalties. - The first violation of any provision of this Act shall cause the 
suspension of the license to operate or the business permit of the establishment or the person 
concerned for not less than one (1) week but not more than four (4) weeks and a fine of not less 
than Twenty thousand pesos (P20,000.00) but not more than Fifty thousand pesos (P50,000.00). 
The second violation of any provision of this Act shall cause the suspension of the license to 
operate or the business permit of the establishment or the person concerned for not less than four 
(4) weeks and a fine of not less than Fifty thousand pesos (p50,OOO.OO) but not exceeding Two 
hundred fifty thousand pesos (P250,OOO.OO): Provided, however, That the procedure of notice 
and hearing shall have been complied with prior to the imposition of the 
said penalties. 
If the offender is a corporation, organization or any similar entity, the official thereof directly 
involved shall be held liable therefor. 
SEC. 9. En/orcement. - Pursuant hereto, the DTI, the DOH and the local government 
units (LOUs), in coordination with the CHED, are mandated to implement the provisions of this 
Act. After filing of an appropriate complaint, and after due notice and hearing, the proper 


authorities may also cause the cancellation or revocation of the business permit, permit to 
operate, franchise and other similar privileges granted to any business entity that faDs to 
abide by the provisions of this Act. 
SEC. 10. Separability Clause. - If any provision or part hereof is held invalid or 
unconstitutional, the other sections or provisions hereof shall not be affected thereby and shall 
remain in force and effect. 
SEC. II. Repealing Clause. - All laws, executive orders, decrees, instructions, rules and 
regulations contrary to or inconsistent with any provision of this Act are hereby amended, 
repealed or modified accordingly. 
SEC. 12. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in two (2) newspapers of general circulation or in the Official Gazette, whichever 
comes earlier. ' 
Approved,