FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
Introduced by Senator Antonio “Sonny” F. Trillanes N 
EXPLANATORY NOTE 
Quality education is a fundamental right to which the nation’s citizenry is entitled to, as 
provided in the fundamental law, thus: 
uEDUCATIOND 
USection 1. The State shall ~rotect and 
promote the riaht of all citizens to uualitw education 
at all levebr, and shall take appropriate steps to make 
such education accessible to all.’” 
It is also a fundamental requirement to develop productive and functional members of 
society. The ideals of social justice, economic prosperity and sustain peace, order, 
freedom and equality in our country could never be attained so long as majority of the 
population, the poor in particular, remain benighted under the darkness of ignorance. 
To level the playing field between the haves and the have-nots, democratizing access to 
quality education to all Filipinos must be made a national policy. Opportunities to pursue 
higher education and relevant training in fields of study vital to the national economy, 
including the nation’s collective national psyche, must be provided to every citizen who 
wish to avail thereof 
It is a known fact that countless capable and deserving students are prevented from 
pursuing higher studies due to their dire financial conditions. The government is trying to 
address this problem. 
But with the limited scope and coverage of existing state 
scholarship programs available to students, the results are far from encouraging. 
Strengthening the Commission on Higher Education’s educational assistance program, 
better known as the “Study-Now-Puy-Luter Plan”, with substantial funding is perceived 
to be the key solution that would provide headway and revitalize the program. An 
enhanced assistance program that shall increase the prospects of poor but deserving 
students of acquiring quality education and training needed to uplifi not only their own 
lot but that of their family and communities as well. 
This bill is intended to fulfill the commitment and resolve of the State, as enshrined in the 
Constitution, to pursue the democratization of educational opportunities for every 
deserving citizen and promote social and economic development for every Filipino 
family. 
’ Article XIV, Section- 1 of the 1987 Philippine Constitution, 


In view of the foregoing considerations, passage of this bill is earnestly encouraged. 
A"IB a s o m  F.' TRILLANES zv 
Senator 


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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
Introduced by Senator Antonio “Sonny” F. Trillanes IV 
AN ACT 
PROVIDING FOR A COMPREHENSIVE STUDY-NOW-PAY-LATER PLAN 
AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assem bled: 
SECTION 1. Short Title - This Act shall be known as the “Comprehensive 
Study-Now-Pay-Later Program of 2007 ”. 
SEC. 2. Declaration of Policy. - It is the policy of the State to promote and 
ensure quality education for all Filipino citizens. Towards this end, the State shall provide 
mechanisms to facilitate access to higher education to all deserving Filipinos, recognizing 
on the process the government’s responsibility to put education as a priority over among 
its many programs. 
SEC. 3. Definition of Term. -For purposes of this Act, the following terms shall 
mean: 
1) ‘‘Scholar” refers to a qualified beneficiary who draws from the Study-Now- 
Pay-Later Loan Fund to support his tertiary education; 
2) “Fund” refers to the special fund which shall be used to finance the 
Comprehensive Study-Now-Pay-Later Plan, 
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3) “Authority” refers to the Educational Loan Fund Authority which is 
authorized by this Act to develop and implement the Comprehensive Study- 
Now-Pay-Later Plan; 
4) “Board” refers to the Educational Loan Fund Board which is the governing 
body through which the Authority exercises its powers and hnctions, to 
implement the provisions of this Act; 
SEC. 4. Study-Now-Pay-Later Loan Fund - There is hereby created a special 
fund to be administered by the Educational Loan Fund Authority created under this Act. 
Said funds shall be used to finance educational loans to cover matriculation, school fees 
and other expenses needed for quality education. 
SEC. 5. Educational Loan Fund Authority. - To carry out the aforementioned 
policy, there is hereby created an Educational Loan Fund Authority under the 
Commission on Higher Education (CHED) which shall be organized within sixty (60) 
days after the approval of this Act. 
SEC. 6. Powers and Functions. - The Authority shall have the following powers 
and functions: 
a) Establish, develop and implement a comprehensive program for the effective 
disposition of the Study-Now-Pay-Later Loan funds for loans to qualified loan 
applicants; 
b) Develop a system of collecting payments of loans granted under this Act. 
c) Issue rules and regulations necessary for the proper implementation of this 
Act; and 
d) Exercise such other functions and duties as will promote and expand 
educational opporlunities for needy and deserving Filipinos to carry into effect 
the provision of this Act. 
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SEC. 7. Educational Loan Fund Board - The powers of the Authority shall be 
exercised and its hnctions and duties performed by the Educational Loan Fund Board 
which shall be composed of the Secretary of Education as ex-officio Chairman, the 
Chairman of the Commission on Higher Education (CHED) as ex-officio Vice Chairman 
and the heads of the following government agencies or their representatives as ex-officio 
members: 
(a) Government Service Insurance System (GSIS); 
(b) Social Security System (SSS); 
(c) National Anti-Poverty Commission (NAPC) 
The President of the Philippines shall appoint six (6) other members of the Board, 
chosen from nominees of non-governmental organizations involved in education. 
SEC. 8. Term of Ofice - The members of the Board shall hold office until their 
successors shall have been appointed or qualified. 
SEC. 9. &feelings. - The Board shall hold regular meetings to be held every first 
Monday of the month. The Chairman of the Board shall be the presiding officer. In the 
absence of the Chairman, the vice Chairman of the Board shall automatically take over. 
Minutes of all meetings shall be recorded and attested to by a simple majority of all 
regular Board members. 
At least one meeting per year shall be devoted to a review of the Study-Now-Pay- 
Later Loan Fund’s performance in terms of the following: 
i) 
ii) 
iii) 
iv) 
v) 
vi) 
Total number of current beneficiaries; 
Number of dropouts, voluntary or revoked; 
Average academic performance by year of study; 
Breakdown of scholars by field of study; 
Breakdown of scholars by region of origin; 
Breakdown of scholars by place of study; and 
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vii) 
Breakdown of scholars by size of annual family income and family 
livelihood. 
SEC. 10. Quorum. - All meetings shall only be convened with a quorum of 
simple majority of the regular Board members. AI1 meetings convened without the said 
quorum shall be deemed null and void. 
SEC. 11. fiecutive Director. - There shall be an Executive Director who shall be 
appointed by the Board and shall have the rank of a bureau director and shall hold office 
until replaced by the Board. 
The Executive Director shall have at least seven (7) years experience in school or 
educational administration and a holder of at least a Master’s degree conferred by a 
reputable educational institution. 
. 
SEC. 12. Secretariat. - The Board shall create a Secretariat which shall be 
headed by the Executive Director to cany out the functions of the Board. The Board shall 
likewise provide for the qualifications and compensation of employees in the Secretariat 
in accordance with the existing Civil Service rules and regulations. 
The Secretariat shall exercise the following fbnctions: 
a) Recommend the approval of educational loan applications by the Board; 
b) Review, evaluate and assess programs, plans of action and agenda of the 
Board; 
c) Review, evaluate and assess the academic standing loan borrowers; 
d) Recommend the cancellation or revocation of loans; and 
e) Perform such other powers and knctions as may be determined by the Board. 
SEC. 13. Qual@catiotis of AppIicatzts. - Any Filipino citizen who graduates 
from a duly recognized high school, and passes the college university entrance 
examination where he or she intends to enroll on is qualified to avail of the benefits of the 
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Educational Loan Fund. The applicant must not presently be enjoying any scholarship or 
study grant. 
SEC. 14. Terms of Loan. - The loan available to a beneficiary of the Student 
Loan Fund shall be subject to the following terms and conditions: 
a. Coverage - Loans shall be available only for undergraduate degree courses. 
This program shall not cover post graduate courses. 
b. Loan Amount - The maximum annual loan amount shall be equivalent to the 
prevailing cost per academic unit at the University of the Philippines 
multiplied by fifty (50) academic units. Said loan shall be payable directly to 
the concerned school. 
c. Interest - All loans granted shall have an interest rate of not more than 10 
percent but not less than 5 percent as determined by the Board. 
SEC. 15. Repayments. - The payment for loans shall start five (5) years after the 
loan grantee graduates from the course he or she took Provided, That payments for 
educational loans must be paid in five (5) equal annual amortizations from the date the 
first loan payment becomes due. The heads of the GSIS, the SSS and the POEA are 
hereby directed to closely coordinate with the Board to determine the occupational status 
of borrowers for purposes of loan repayments to the hnd. 
SEC. 16. Implementing Rules and Regulations. - The Department of Education 
and the Commission on Higher Education shall, within six (6) months from the 
effectivity of this Act, issue the necessary rules and regulations to cany out the objectives 
of this Act. 
SEC. 17. Appropriation. - There is hereby appropriated the sum of Five Billion 
Pesos (P5,000,000,000.00) 
out funds in the National Treasury not otherwise appropriated 
to be used to finance the Comprehensive Study-Now-Pay-Later Program. Ten Million 
Pesos (PlO,OOO,OOO.OO) of said appropriation shall be used initially for the operating 
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expenses of the program, the rest shall form part of the Study-Now:Pay-Later Loan 
Funds. 
ThereaRer, the amount necessary to carry out the provisions of this Act shall be 
included in the annual General Appropriations Act. 
SEC. 18. Separability Clause - If for any reason any provision of this Act is 
declared unconstitutional or invalid, parts or provisions ofthis Act which are not affected 
shall continue to be in full force and effect. 
SEC. 19. Repealing Clause - All laws, executive orders, presidential decrees, 
implementing rules and regulations inconsistent with this Act are hereby repealed or 
modified accordingly. 
SEC. 20. Effectivity Clause - This Act shall take effect after fifteen (15) days 
after its publication in two (2) newspapers of general circulations. 
Approved, 
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