Republic of the Philippines
HOUSE 0F REPRESENTATIVHS
Quezon City, Metro Manila
NINETHENTH CONGRESS
First Regular Session
-`   ,-    -\   ~
HOUSE BILL NO.
Introduced by Representative Ivan Howard A. Guintu
EXPLANATORY NOTE
Republic Act. No. 10931, otherwise known as the "Universal Access to Quality Tertiary
Education Act" provides that quality education is an inalienable right of all Filipinos and it is
the policy of the State to protect and promote the rights of all students to quality education at
all levels. Therefore, the State shall take appropriate steps to make such education accessible
to all.
The said law provides for free tuition and exemption on other fees for students of state
colleges  and  universities.  While this  significantly  contributes  to  making  quality  education
accessible to all, it must be noted that there are a lot more factors that hinder the attainment of
this desired goal. One such obstacle is the cost-of-living expenses and other education related
expenses which discourages qunlified students in families below the poverty line to consider
pursuing higher education.
Libre man po ang tuition fee para sa ating mga estudyante.  Marami pa rin po ang
nahihirapan tumulay sa kolehtyo sapagkat wala po silang mapagkukunan ng pangtustos para
sa  kanilang  panumuhay  habang nag-aaral.  Lalo  na  po  sa  mga  estudyanteng  galing  sa
malayong lugar at kailangan pa pong magbiyahe at lumipat para mahapag-aral, kailangan po
ay mabigyan natin sila ng paghakataon na magkaroon ng pagkukunan ng para sa kanilang
tirahan, pagkain, aklat at iba pang gugulin.


Although there are existing scholarships and grants, their scope is still limited.
Thus, this bill seeks to fill that gap by providing a means to cover other expenses that
necessarily come with studying, such as board and lodging, pocket money, transportation costs,
food expenses, uniforms and personal clothing, books and supplies and other miscellaneous
expenses. Moreover, this bill seeks to alleviate the burden that the students face by offering
them student loans with minimal interest.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HOusEiniiro.65i3
Introduced by Representative lvan Howard A. Guintu
AN ACT
ESTABLISHING THE COLLEGE LIVING EXPENSES FINANCING (CLEF)
PROGRAM TO SUPPORT HIGHER STUDIES OF FILIPINO STUDHNTS 0F
GOOD ACADEMIC STANDING, MANDATING TEE NATIONAL GOVERNMENT
T0 SET UP A LOAN GUARANTEE FUND 0N STUDENT LOANS T0 BE
PROVIDEI) BY THE DEVELOPMENT BANK OF THE PHILIPPINES (DBP) AND
TIIE LAND BANK OF THE PHILIPPINES (LBP), APPROPRIATING FUNDS
THEREFOR AND FOR OTHER PURPOSES
Be  it  enacted by  the  Senate  and the  House Of Representatives  Of the  Philippines  in
Congress assembled:
SECTION 1. Sfeorf rj£/c. ~ This Act shall hereinafter be referred to as the "College
Living Expenses Financing (CLEF) Act."
SHC. 2. Dcc/¢rafo# a/Po/I.ey. ~ Republic Act. No.10931, otherwise known as the
"Universal Access to Quality Tertiary Education Act," provides that quality education is an
inalienable right of all Filipinos and it is the policy of the State to protect and promote the rights
of all students to quality education at all levels. Therefore, the State shall take appropriate steps
to make such education accessible to all.
Republic Act No.  10687, otherwise known as "Unified Student Financial Assistance
System for Tertiary Education quniFAST) Act," further 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 hereby declared the policy of the State to promote
the  capacities  of all 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. CotJer¢ge -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 euroll 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).
SEC.  4. IV¢fure a/ ffec F!.#¢ncj.a/ 4ssisJfl!"cc. ~ The CLEF  Program  is  a long-terln
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;
(e)   Uniforms and personal clothing;
(f)    Books and 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 herein 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 prevaihng 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.


SHC. S. Credit Guarantee by the Natiounl Governn'ueut. -In order to c;owes 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
(P 10,000,000,000.00) over the next ten (10) years to be deposited with the National Treasury.
The CLEF Guarantee Fund may support loans to the students up to five (5) times of its nominal
value.  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.
SEC. 6. rmcfu.i.g ¢„d MomdrorI.#g. ~ 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 perfomance, Sections 1 I ,12, and 13 ofRepub]ic 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.
SHC. I. Inaplementing 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.
SEC. 8. Stzpfl!r¢bI./try CJause. -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.
SHC.  9.  IVo#-Jxp¢i.rme#f  C/¢#§c.  - 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.
SHC.   10.  RepeflJJ."g  Ctowse.  ~  All  laws,  executive  orders,  presidential  decrees,
implementing rules and regulations inconsistent with this Act are hereby repealed or modified
accordingly.
SEC. 11. Ej7rccfr.vtry. -This Act shall take effect fifteen ( 15) days after its publication
in the Official Gazette or in two newspapers of general circulation.
Approved>