FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session 
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) 
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SENATE 
S.B.No. 3285 
Introduced by Senator Edgardo J. Angara 
EXPLANATORY NOTE 
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The 1987 Constitution mandates 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. "In accordance with this mandate, the Constitution likewise provides for the 
establishment and maintenance of free public education in the elementary and high school levels. 
This, however, does not mean that the right to education excludes the college level. The right to 
quality education and the right to choose a profession or course of study is guaranteed to all 
citizens "subject to fair, reasonable and equitable admission and academic requirements" at all 
levels. 
The Supreme Court in the case of Villar et al. vs. Technologicallnstilute afthe Philippines 
et al. States: "What cannot be stressed too sufficiently is that among the most impOltant social, 
economic, and cultural rights is the right to education not only in the elementary and high school 
grades but also on the college level. The constitutional provision as to the State maintaining 'a 
system of free public elementary education and, in areas where finances permit, establish and 
maintain a system of free public edncation' up to the high school level does not per se exclude 
the exercise of that right in colleges and universities. It is only at the most a reflection of the lack 
of sufficient funds for such a duty to be obligatory in the case of students in the colleges and 
universities. " 
The problem of cost of college education is addressed to some extent by the state 
universities and colleges (SUeS) and the local universities and colleges (LUes) which regularly 
receive subsidy from government, hence, they charge lower tuition. Unlike sues and LUes, 
private colleges and universities are totally dependent 'on tuition fees for support. 
It is 
unfortunate that private higher education, in spite of being the largest post-secondary ,sector in 


education, remains the only sector without significant support for students and parents in terms 
of financial access. 
Interestingly, the 1998 Philippines EducationSector Study or PESS, noted that the private 
sector has a higher rate of employment as compared to the public sector. Seventy-one percent of 
private school graduates are employed as compared to 64% from the public sector. The same 
study also observed that graduates from pnvate institutions of higher learning do not wait for 
jobs as long as their counterparts from the public sector. 
Furthermore, as of 2009, it was 
estimated that the private sector accolmted for over 60% of emollment in higher education. 
In the name therefore of greater access to college education and equality of opportunity 
for all higher education students, this bill proposes to establish a loan program for students and 
parents in private education. 
For the foregoing reasons, the swift approval of this bill is eamestly sought. 
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//Mv-
EDGARDO J, ANGARA 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session 
) 
) 
) 
SENATE 
S.B. No. 3285 
Introduced by Senator Edgardo J. Angara 
AN ACT 
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FURTHER DEMOCRATIZING EDUCATIONAL OPPORTUNITIES IN HIGHER 
EDUCATION, CREATING A FUND AND A LOAN PROGRAM FOR STUDENTS AND 
PARENTS IN PRIVATE EDUCATION, APPROPRIATING FUNDS THEREFOR, AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines inCongress 
assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "Fund for Assistance to 
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Students and Parents in Private Education Act of2012," 
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SEC. 2. Declaration of Policy. - It is declared policy of the State to protectand promote 
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the right of all citizens to quality education at all levels and to takeappropriate steps to make such 
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education accessible to all. 
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SEC. 3. Definition of Terms. - For purposes of this Act,'the following terms shall mean: 
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(a) "Loan Program for Students and Parents in Private Education" or "Loan Program" refers 
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to the govemmenteducational loan program for students and parents in the private 
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education sector which shall be designed to fwther democratize access to educational 
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opportunities in higher education, 
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(b) "Fund for Assistance to Students and Parents in Private Education" or "Fund" refers to a 
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loan fund made available by govermnent to' service the financial needs of eligible 
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shldents and parents in private higher education, 
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<c) "Council" refers to the Policy Making Council. 
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(d) "Secretariat"' refers to the inter-agency body organized to assist the Conncil in the 
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implementation of the Loan Program for Students and Parents in Private Education and 
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serves as its implementing arn1. 
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(e) "Tertiary Education" refers to the education and training in degreeprograms offered in 
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higher education institutions, the completion of which are attested by the Commission on 
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Higher Education (CHED); 
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(i) "Tuition Fee" refers to the fees representing direct cost of instruction,training and other 
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related activities and for the student's use of theinstruction and training facilities; and 
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(g) "Miscellaneous Fees" refers to those feeswhich cover other necessary costs supportive of 
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instruction, including, but not limited to medical and dental, athletic, library 
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andlaboratory fees. 
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SEC. 4. Fund jor Assistance to Students and Parents in Private Education. - A Fund for 
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Assistance to .Students and Parents in Private Education is hereby created and made available by 
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government to service the financial needs of eligible students and parents in private higher 
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education. 
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SEC. 5. Loan Program jor Students and Parents in Private Education. - A Loan 
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Program for Students and Parents in Private Education shall be designed to (1) further 
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democratize access to educational opportunities in higher education, and (2) be self-sustaining in 
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its operations and financial viability. The Loan Program shall reside within the Fund. 
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The Loan Program shall be of two (2) categories: (1) student loans made to students and 
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paid directly to private colleges or universities; and (2) student loans made to p:;u-ents and paid 
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directly to private colleges or universities. The loanable amounts to both student- and parent-
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bon-owers as well as interest rates and collection schemes shall be detennined by the Council, 
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guided by the balance objectives of bon-ower repaYI?ent affordability and the Loan Program's 
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sustainability. The loaned amounts shall be used to pay for education expenses which shall 
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include school charges such as tuition and miscellaneous fees, books, supplies, room and board, 
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transportation and rental of personal computer. Payments of student loans granted to student-
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bon-owers shall be made immediately upon employment under such viable repayment systems as 
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may be established by the Council.Student loans granted to parent-bon-owers may have higher 
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limits, but payments shall start immediately. 
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SEC. 6. Policy Making Council. - To carry out the purposes of thisAct, there shall be 
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created, a Policy Making Council to oversee the Fund and implement the Loan. It shall be 
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composed of the Chairperson of the Commission on Higher Education as Chair, the Secretary of 
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the Department of Labor and Employment as Vice-Chair, the Director-General of the National 
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Economic Development Authority, Secretary of the Department· of Finance, Secretary of the 
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Department of Budget and Management, Govemor of the Bangko Sentralng Pilipinas, President 
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of the Social Security System, the General Manager of the Govemment Service Insurance 
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System, and the heads of private tertiary education organizations, as members. 
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The Council shall be a goveming body that shall fonnulate policies, guidelines, and rules 
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and regulations necessary for the operation, management, sustainability and supervision of the 
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Fund and the Loan Program. 
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The Council may accept donations, legacies, grants-in-aid and other contributions to fonn 
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part of the loan fund. 
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SEC. 7. Secretariat. - An inter-agency Secretariat, the composition and function of 
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which shall be detennined by the Council, is hereafter created, to assist the C01mcil in the 
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implementation of this Act. 
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The sum ofTen million pesos (PhpIO,OOO,OOO.OO) is hereby appropriated annually to be 
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included in the budget of the COlllinission on Higher Education to finance the operations of the 
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Secretariat. 
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SEC. 8. Qualifications of Applicants. -
The qualifications of student- or parent-
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bOlTowers shall be determined by the Council. 
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SEC. 9. Implementing Rules and Regulations. - The Council shall, within sixty (60) 
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days from the effectivity of this Act, issue such rules and regulations necessary for the proper 
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implementation of this Act. 
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SEC. 10. Appropriations. - There is hereby appropriated the amount of One Billion 
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Pesos (Phpl,OOO,OOO,OOO.OO) out of the funds in the National Treasury, not otherwise 
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appropriated, to be used to initially constitute the Fund for Assistance to Students and Parents in 
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Private Education and to finance the Loan Program for Students and Parents in Private 
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Education. 
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SEC. 11. Repealing Clause. -
All laws, presidential decrees, executive orders, 
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proclamations, rules and regulations which are inconsistent with the provisions of this Act are 
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hereby repealed or modified accordingly. 
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SEC. 12. Separability Clause. -
If any proV1Sl<;1l1 of this Act is held invalid or 
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unconstitutional, other provisions not affected shall be continue to be in full force and effect. 
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SEC. 13. Effectivity. - This Act shall take effect fifteen (15) days after its complete 
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publication in the Official Gazette and in atieast two (;2) newspapers of general circulation. 
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Approved, 
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