SEVENTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
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SENATE
S B. No. 1220
KF(’LeA Kl) BY
Introduced by: Senator Sonny Angara
EXPLANATORY NOTE
Poverty alleviation and global competitiveness can be achieved by fostering human 
development through proper education. Poverty incidence among Filipinos in 2015 was 
estimated at 26.3 percent.
Based on studies conducted by the United Nations, unemployment and underemployment 
lie at the core of poverty. For the poor, labor is often the only asset they can use to improve their 
well-being. Hence, the creation of productive employment opportunities and providing the tool 
to maximize these opportunities are essential in achieving poverty reduction, and sustainable 
economic and social development.
In recognition of the strategic role of state universities and colleges (SUCs) in national 
development, their budget has almost doubled in 5 years from P22.03 billion in 2011 to P42.28 
billion in 2015. But more needs to be done in order to alleviate the plight of students, especially 
from poor families. According to the 2013 Functional Literacy, Education and Mass Media 
Survey (FLEMMS), one in every 10 or about 4 million Filipino children and youth were out-of­
school in 2013, and one of the primary reasons for not attending school was the high cost of 
education.
Our country's per capita expenditure in higher education is a far cry from our neighboring 
countries with Indonesia, Thailand and Vietnam investing more than twice as much as the 
Philippines, while Malaysia and Singapore spending about 17 and 29 times more respectively.
Given the importance of education in uplifting the lives of Filipinos, it is imperative that 
the government provide more funding to tertiary education and make it more accessible by 
granting free higher education to all students. Higher education, in reality, does not only develop 
students into competent individuals sought by the labor market, it likewise improves their life 
skills. In view of the forgoing, the passage of this bill is earnestly sought.
SONNY ANGARA


SEVENTEENTH CONGRESS OF THE REPUBLIC 
)
OF THE PHILIPPINES 
)
First Regular Session 
)
o f t b e j ^ T c p t a f  j
'16 J'jT 24 P6:42
SENATE
S.B.No. 1220
R F C L l V r . i )  b y
Introduced by: Senator Sonny Angara
AN ACT
PROVIDING FOR A FULL TUITION FEE SUBSIDY, INCLUDING MISCELLANEUOS 
EXPENSES, FOR STUDENTS ENROLLED IN STATE UNIVERSITIES AND COLLEGES 
(SUCs), AND APPROPRIATING FUNDS THEREOF
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
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SECTION 1. Short Title. -  This Act shall be known as the “Free Higher Education for 
All Act.”
SEC. 2. Declaration of Policy. -  It is hereby declared that accessible and quality 
education is an inalienable right of the Filipino. 
Therefore, the State shall renew its 
constitutionally mandated duty to make education its top budgetary priority by providing free 
higher education for all students in state universities and colleges.
SEC. 3. Eligibility to the Full Tuition and Miscellaneous Fees Subsidy. -  All Filipino 
citizens who are either currently enrolled at the time of effectivity of this Act, or shall enroll at 
any time thereafter, in courses in pursuance of a bachelor’s degree, certificate degree, or any 
comparable undergraduate degree in any state university or college shall be exempt from paying 
tuition and miscellaneous fees; Provided, That they meet the admission requirements of the 
SUCs where they intend to enroll in.
SEC. 4. Exceptions to the Subsidy. -  The provisions of the next preceding Section of the 
Act notwithstanding, the following are hereby disqualified and deemed ineligible for the full 
tuition and miscellaneous fees subsidy:
a)
b)
c)
d)
Persons who have already attained a bachelor’s degree or equivalent degree from any 
higher education institution, whether public or private.
Persons who have been dishonorably discharged from any higher education 
institutions, whether public or private, for any reason other than financial difficulty in 
paying tuition and other fees;
Persons who have been convicted of any crime involving moral turpitude;
Persons who fail to regain good academic standing within their respective state 
universities and colleges after one (1) year upon being placed on academic probation 
or delinquent status.
SEC. 5. Special Tuition and Miscellaneous Fees Subsidy Fund. -  The Special Tuition 
Subsidy Fund, hereinafter referred to as the Fund, is hereby established. The Fund shall be used 
solely for the purpose of implementing the full tuition and miscellaneous fees subsidy under the 
provisions of this Act. Tuition fees for units enrolled by persons eligible for the tuition benefit 
under the provisions of this Act, as well as miscellaneous fees, payable to state universities and 
colleges, shall be paid from this Fund.


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SEC. ^.Administration of the Fund. -  The Fund shall be administered by the Commission 
on Higher Education (CHED) and shall have the following powers and functions:
a)
b)
c)
d)
e)
Manage and administer the Fund;
Devise a reporting mechanism to be implemented by the state universities and college 
which will detail the exact amount of tuition fee subsidy availed of by persons eligible 
for the full tuition subsidy under this Act;
Formulate and implement an efficient and transparent mechanism to ensure the 
payment of tuition fees, using money from the Fund, to the respect state universities 
and colleges, pursuant to this Act;
Resolve and meditate disputes concerning the ineligibility or disqualification of 
persons from the flill tuition subsidy under the provisions of this Act or any other 
provision of this law; and
Any other powers or function necessary for the implementation of the provisions of 
this Act.
SEC. 7. Tuition Report. -  The President of each state university or college shall submit to 
the CHED, within the five (5) days after the last day of late registration for each semester, a report 
detailing the names of persons eligible for the full tuition subsidy in their institution, as well as the 
amount of tuition fee due based on the number of units enrolled.
SEC. 8. Payment from the Fund. -  The CHED shall ensure the full payment of tuition and 
miscellaneous fees due to the state university or college, as reported under the next preceding 
section of this Act, no later than thirty (30) days after the submission of the report to the CHED; 
Provided, That the CHED shall reserve the right to withhold or disallow the payment of any 
reported fees which are perceived to be anomalous or irregular until further investigation has been 
conducted.
SEC. 9 Accountability Report. -  At the end of each academic semester, the President of 
each university or college shall submit to CHED a report reconciling the funds received from the 
Fund. Any unused or improperly disbursed amount shall be returned immediately to the Fund.
SEC. 10. Midterm Report. -  Starting the first school year upon effectivity of this Act, the 
CHED shall conduct a mandatory review and submit a midterm report to Congress as to the status 
of implementation of this Act.
In this midterm report, the following key metrics of access to and quality of public tertiary 
education:
a) Enrollment rate;
b) Student demographics;
c) Graduation rate;
d) Gross tuition receipts;
e) Disqualification and ineligibility;
f) Teachers’ welfare and training profiles;
g) Adequacy of funding and training profiles;
h) Other educational quality indicators, including but not limited to physical leaning 
infrastructures, teacher-to-student ration and student housing.
SEC. 11. Appropriations. -  The amount of Twenty Billion Pesos (P20,000,000) is hereby 
initially 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.


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SEC. 12. Implementing Rules and Regulations. 
-  Within sixty (60) days from the 
effectivtiy of this Act, the CHED shall promulgate the implementing rules and regulations 
necessary for the implementation of this Act.
SEC. 13. Separability Clause. 
-
 
Should any provisions herein be declared 
unconstitutional, the same shall not affect the validity of the other provisions of this Act.
SEC. 14. Repealing Clause. -  All laws, decrees, orders, rules and regulations or other 
issuances or parts inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly.
SEC. 15. 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,