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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
Seventeenth Congress
First Regular Session

H.8.No,__4825

Introduced by Congressman Dakila Carlo E. Cua

AN ACT PROMOTING QUALITY HIGHER EDUCATION AND CREATING A NATIONAL
HIGHER EDUCATION LOAN PROGRAM, AND APPROPRIATING FUNDS THEREFOR

EXPLANATORY NOTE

Our very own Constitution recognizes education as one of the vital
instruments for national development, being the primordial factor for the growth
of human potential. In fact, it is the responsibility and obligation of the State to
protect and promote the right of all citizens to quality education at all levels, and
to make such education accessible to all.

Thus far, our government has prioritized and invested in primary and
secondary education, thereby overlooking the Filipinos’ potential to advance
further through higher education.

In this regard, this bill seeks to promote and make higher quality
education accessible to all Filipinos through a low-interest-long-term deferred
payment mode of higher education loan program.

This higher education loan program will not only level the playing field by
providing all Filipinos who are financially challenged and academically abled equal
opportunity, but also serve as the State’s investment into stimulating the
economic, social and cultural advancement of the nation.

DAI LO ENRIQUEZ CUA


SEVENTEETH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session

HOUSE OF REPRESENTATIVES
H.B. No. Agos

Introduced by Congressman Dakila Carlo E. Cua

AN ACT PROMOTING QUALITY HIGHER EDUCATION AND CREATING
A NATIONAL HIGHER EDUCATION LOAN PROGRAM, AND
APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress Assembled:

SECTION 1. Short Title. - This Act shall be known as the “Higher Education Loan
Program [“HELP”) Act of 2017.”

SECTION 2. Declaration of Policy. — It is declared that the State shall promote and
make quality higher education accessible to all Filipino citizens. The State hereby
recognizes the complementary roles of public and private higher educational
institutions in the educational system and the invaluable contribution that the
private colleges and universities have made and will make to education. For these
intents, the State shall:

1, Provide adequate funding and such other mechanisms to increase the
participation rate among all socioeconomic classes in higher education;

2. Provide all Filipinos with equal opportunity to quality higher education in
both the private and public educational institutions;

3. Give priority to students who are financially challenged and academically
able;


4. Ensure the optimized utilization of government resources in education;
5. Recognize the complementary roles of public and private institutions in the
higher educational system.

Specifically, the delivery of quality and accessible higher education shall aim to:

1. Stimulate the economic, social, and cultural advancement of the society;

2. Facilitate access to quality higher education through low-interest-long-term
higher education loan program;

3. Pursue public-private complementary by encouraging diversity and
increasing competition among higher educational institutions within a level
playing field; and

4. Align with the long-term and collective aspirations of Filipinos established
by the NEDA under Ambisyon 2040.

SECTION 3. Higher Education Loan Program There shall be a higher education
loan program [“HELP”] available to all students in participating accredited State
Universities or Colleges [“SUC”] and Private Higher Educational Institutions
[“PHEI”].

SECTION 4. HELP Fund — A Higher Educational Loan Program Fund, hereinafter
referred to as “Help Fund” or the “Fund”, is hereby established. The Help Fund
shall be solely and exclusively used for implementing the HELP under the
provisions of this Act.

SECTION 5. HELP Voucher System — There shall be a higher education loan
voucher system [HLVS] comprising Seventy Percent [70%] of the HELP Fund. The
HLVS shall be available to students in both public and private higher education
institutions under the HELP program. The HLVS shall cover the full cost of
education payable to the participating SUCs and PHEls.

SECTION 6. HELP Cash Loan — There shall be a higher education cash loan [the
“Cash Loan] available for all students in both public and private higher education
institutions under the HELP program. Provided, that all students availing of the
Cash Loan shall submit to the Board an undertaking that all proceeds of the Cash


Loan availed of shall be used directly, solely and exclusively for educational and
other related expenses.

SECTION 7. Implementing Agency — The UNIFAST Board under Republic Act 10687
[the “Board” shall be the lead agency tasked in implementing the provisions of
this Act. The Board shall identify the priority higher educational programs/courses
in each region, develop criteria and conditions for the grant of HELP loans, and
ensure equal opportunity and access to participating accredited higher
educational institutions.

SECTION 8. Qualifications of Applicants — The Board shall promulgate and
periodically review the qualification criteria of applicants availing HELP. An
applicant must meet the following minimum qualifications:

1. Filipino citizen;

2. High school graduate and has completed the K to 12 program, or is
undergoing or has completed a bachelor’s degree;

3. Admitted to any participating accredited SUC or PHEI;

4. In case of Technical or Vocational Courses, applicant must have already
passed TESDA screening/assessment procedure, trade test, or skill
competency evaluation;

5. Declaration whether the applicant is already a beneficiary of any other
student financial assistance and/or loan program granted by the
government or any private individual, corporation, foundation and/or
association;

6. Undertaking that the applicant shall complete his higher education
course/vocation within five [5] years from availment of the HELP.

SECTION 9. Disqualification and Sanctions — The right of any student to avail HELP
under this Act shall not apply if the student fails to comply with the requirements
for good academic standing and such other conditions that may be formulated
and imposed by the Board.


The Board shall not unduly deprive eligible applicants of higher educational loans.
Provided, that said students may be directed by the Board to enrol in priority
courses identified by the Board.

The Board may impose reasonable sanctions to any student who has been found
to have violated any of the provisions of his/her contract, or who have been
found guilty of committing fraud or misrepresentation in availing HELP. Provided,
that the sanctions imposable by the Board under this Act shall not prevent the
Government from pursuing any legal action to protect the interest of the State.

SECTION 10. Scope and Coverage of HELP — HELP shall be available in all higher
education, including but not limited to vocational, undergraduate, graduate, and
post graduate studies. The Board shall identify and accredit the priority programs
and/or courses covered by HELP.

SECTION 11. Availment and Payment of HELP — All higher educational loans
granted under this Act shall be available for five years from its grant [“Availment
Period”) , and shall be paid within ten [10] years [“Payment Period”] counted
from the expiration of the Availment Period.

SECTION 12. Financial Interest of HELP — A simple interest in the rate of One
Percent [1%] per annum computed based on the remaining unpaid principal shall
be imposed on all higher educational loans granted under this Act. Provided, that
there shall be no interest that will accrue during the first two years of the
Payment Period. Provided further, that legal interests shall accrue on all unpaid
amount upon expiration of the Payment Period [“Delinquent Loans”).

SECTION 13. Payment of Delinquent Loans — The Board, in coordination with the
Bureau of Internal Revenue [“BIR”], Government Service Insurance System
[“GSIS”] and Social Security System [“SSS”], shall adopt an efficient automatic
system of salary deduction as means of collecting delinquent HELP loans.
Provided, that this shall be implemented in accordance with existing laws on
salary deduction and payment of debt.


SECTION 14. Appropriations — The initial amount of Twenty Five Billion Pesos
[P25,000,000,000.00] is hereby appropriated from the Presidential Social fund to
implement the provision of this Act. Thereafter, such amount necessary to
effectively carry out the provisions of this Act shall be included in the annual
General Appropriations Act.

SECTION 15. Other Sources of Funds — Other sources of funds such as grants,
donations, collections, and other forms of assistance from local and foreign
donors or other public or private entities, and other private domestic and
international sources may be tapped and facilitated by the Board to support the
program, subject to the regular auditing guidelines and procedures. Provided,
that in case of donations from foreign sources, acceptance thereof shall be
subject to existing government rules and regulations.

SECTION 16. Financial Management and Accountability — All public funds
allocated under this Act shall be managed according to standard government
accounting and auditing rules and regulations to ensure transparency and
accountability in pursuit of the intents for which the fund has been provided.

SECTION 17. Implementing Rules and Regulations — Within Thirty [30] days from
the effectivity of this Act, the Board, in consultation with relevant stakeholders in
higher education, shall promulgate the Implementing Rules and Regulations
necessary for the proper of this Act.

SECTION 18. 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 be in full force and effect.

SECTION 19. 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 20. Repealing Clause — All laws, executive orders, presidential decrees,
implementing rules and regulations inconsistent with this Act are hereby repealed
or modified accordingly, including the provisions of Republic Acts No. 8545 and
10687 on Tertiary Education.


SECTION 21. Effectivity - This Act shall take effect fifteen [15] days after its
publication in the Official Gazette or in two [2] newspapers of general circulation
in the Philippines.

Approved.