Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
First Regular Session

5066

HOUSE BILL NO.< ~~

Introduced by Honorable Mark O. Go

EXPLANATORY NOTE

By express provision of the 1987 Constitution, 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 (Art. 14 Sec. 1). Furthermore, the State recognizes the complementary
roles of public and private institutions in the educational system and shall exercise reasonable
supervision and regulation of all educational institutions (Art 14. Sec. 4).

The role of Private Higher Education Institutions (PHEIs) in providing better access to
education is a salient feature of our Higher Education System. In the Asian region, the
enrollment share of PHEls over the total higher education enrollment is around 36%. However,
the Philippines is one of the few countries in the region wherein the enrollment share of PHEIs
has traditionally been higher that that of State Universities/Colleges (SUCs). PHEIs constitute
88% of the nation’s total higher education institutions, and make up at least 60% of the
enrolment share in higher education. Former CHED Chairperson Dr. Patricia Licuanan noted that
PHEls has long dominated the landscape of higher education in the Philippines, citing that the
University of Santo Tomas (UST) was established in 1611 long before the University of the
Philippines (UP) was established in 1908. Given that education is a top priority of our
government, it is only but necessary to direct our attention where majority of the students are,
while continuing our efforts in improving the quality of and access to our SUCs.

Under the current Study-Now-Pay-Later scheme administered by the Commission on
tion, the government acts as the loan creditor of student-beneficiaries, However,
fing access to higher education, and ensuring the retention of students
in higher education institutions fall not only on the SUCs but on PHEIs as well. It is in this
regard that we should provide PHEIs the avenue for taking on their part as the State’s partners in
nation-building and as investors in human development. By mandating all PHEIs to implement a
Study-Now-Pay-Later program shouldered by their own funds, we ensure equity among Filipinos
who view education as a means of overcoming poverty.

In view of the foregoing, immediate consideration and approval pf ffjis bill is eamestly

sought.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
First Regular Session

5066

HOUSE BILL NO.

Introduced by Honorable Mark O. Go

AN ACT MANDATING ALL PRIVATE HIGHER EDUCATION INSTITUTIONS TO
IMPLEMENT A STUDY-NOW-PAY-LATER PROGRAM

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

SECTION 1. Short Title. — This Act shall be known as the “Study-Now-Pay-Later Act of
2017"

SECTION 2. Declaration of Policy. ~ tis the policy of the State to protect and promote
the right of citizens to accessible tertiary education. Furthermore, the State recognizes the
complementary roles of public and private institutions in the educational system. Towards this
end, the State shall mandate all Private Higher Education Institutions to implement a Study-

Now-Pay-Later Program.

SI

“TION 3. Eligibility of Scholars. — Any Filipino citizen enrolled in any degree

program at any Private Higher Education Institution (PHIE) at the time of the effectivity of this

Act, or shall enroll any time thereafter and whose fami

income does not exceed Php 300,000
per annum shall be eligible to apply for the Study-Now-Pay-Later program.

SECTION 4. Study-Now-Pay-Later Program. ~ There shall be a Study-Now-Pay-Later
Program implemented at every PHEI accredited by the Commission on Higher Education
(CHED). The Program shall be made available to five percent (5%) to ten percent (10%) of the

student population of the implementing PHEI.

SECTION 5. Coverage of the Study-Now-Pay-Later Program. ~ The program shall be

implemented to cover the full amount of the tuition fee of each student-beneficiary of the


program. Provided, that nothing in this Act shall preclude PHEls from promulgating and

developing other forms of financial assistance to their students.

SECTION 6. Payment, ~ The student-beneficiary shall be obliged to pay the PHEI the
amount of tuition fee during the period covered by the program two (2) years after being
gainfully employment. Payments shall be made in tranches based on the financial position of the
payee. The mode of payment shall be determined by the PHEI subject to the approval of CHED.
In the event of failure to complete the payment in tranches, an interest of 6% per annum

shall accrue upon the balance only after the period of the final tranche has lapsed.

SECTION 7. Reportorial Requirements. — Subject to the Rules of CHED, each PHEI is
mandated to submit an annual report on the status of the number of beneficiaries of the program
and the amount of tuition fees covered. CHED may require the submission of other reports
deemed necessary for the efficient monitoring of the implementation of this Act.

SECTION 8. Implementing Rules and Regulations, — Within sixty (60) days from the
effectivity of this Act, the CHED upon consultation with the Philippine Association of Colleges
and Universities (PACU) and the Coordinating Council of Private Educational Associations of
the Philippines (COCOPEA) shall promulgate the implementing rules and regulations necessary
for the implementation of this Act.

SECTION 9. Separability Clause. — Should any provision herein be declared

unconstitutional, the same shall not affect the validity of the other provisions of this Act.

SECTION 10. Repealing Clause. — All laws, decrees, orders, rules and regulations, or
other issuances or parts inconsistent with the provisions of this Acts are hereby repealed or

modified accordingly.

SI

“TION 11. Effectivity Clause.— This Act shall take effect fifteen (15) days from the
date of its publication in the Official Gazette or in thwo (2) newspapers of general circulation in

the Philippines.

Approved,