Republic of the Philippines
HOUSE OF REPRESENTATIVES

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BiLtno.486

LL
Introduced by HON. JESUS “BONG” C, SUNTAY

Ln
EXPLANATORY NOTE

This bill seeks to provide a more inclusive and responsive loan program for students to make
tertiary education more accessible.
Section 1, Article XIV of the 1987 Constitution provides that:

“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.”

Education is not only a major factor in the nation’s economic and social growth but also an
important tool for human development. However, despite government efforts to make education
accessible to all citizens through scholarships, grant-in-aid, and special loan programs, quality
education remains inaccessible to many, especially to the poor or underprivileged. With the high cost
of tuition, school fees, and other education-related expenses necessary to enroll in higher education
institutions, many high school graduates are unable to purse higher education for lack of financial
resources,

Republic Act No. 10931, otherwise known as the “Universal Access to Quality Tertiary
Education Act,” provides a student loan program to those who want to pursue higher education.
However, due to various factors such as limited scope and coverage, limited funds, dubious loan

processes, and inefficient loan collection schemes, the program turns out to be inadequate to enable

ATTY. JESUS “BONG” C. SUNTAY

eligible citizens full access to higher education.


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Republic of the Philippines
HOUSE OF REPRESENTATIVES

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No, 7486

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Introduced by HON. JESUS “BONG” C. SUNTAY

— ee

AN ACT
PROVIDING FOR A MORE INCLUSIVE AND RESPONSIVE STUDENT LOAN

PROGRAM FOR TERTIARY EDUCATION, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 10931, OTHERWISE KNOWN AS THE “UNIVERSAL ACCESS TO QUALITY

TERTIARY EDUCATION ACT”

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

assembled:

SECTION I. Section 8 of Republic Act No. 10931 is hereby amended to read as follows:

“SEC. 8, Student Loan Program for Tertiary Education. — To support
further the cost of tertiary education or any part or portion thereof, a student loan
program for tertiary education is hereby likewise established for all Filipino students
who shall enroll in SUC, LUC, private HEI and TVET program in all TVIs registered
under the TESDA. The Loan program shall be administered by the UniFAST Board
and the amount necessary to fund the program shall be included in the budgets of the
CHED and the TESDA: Provided, That the UniFAST [may-offer-shor-termoriong-
termtoans] SHALL OFFER LOANS THAT ARE RESPONSIVE TO THE
NEEDS OF STUDENTS: Provided, further, That those who availed of the loan
during their undergraduate degree may still avail of another cycle of student loan for
their pursuit of graduate studies, including medicine and law after they have fully paid
the previously availed loan: Provided, furthermore, That those who did not avail of
the loan program during their undergraduate studies may avail of it to pursue graduate
studies including medicine and law: Provided, finally, That those who did not avail of
the loan program during their undergraduate studies may avail of the loan program for
their review expenses for licensure examinations administered by the Professional
Regulation Commission (PRC).

“50 KK XX”


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The UniFAST Board, in consultation with relevant agencies, shall
formulate loan payment guidelines for loan beneficiaries whose earnings are not
covered by the GSIS or the SSS programs, including those of overseas Filipino
workers (OFWs), emigrants, and self-employed persons and professionals (SEP).

“THE UNIFAST BOARD MAY ENTER INTO AN AGREEMENT
WITH ACCREDITED GOVERNMENT FINANCIAL INSTITUTION, BANK,
OR OTHER GOVERNMENT AGENCY, TO FACILITATE THE
ADMINISTRATION AND COLLECTION OF THE STUDENT LOAN
PROGRAM.

“THE CHED SHALL CONDUCT AN INFORMATION
CAMPAIGN, THROUGH ELECTRONICALLY ACCESSIBLE FORMAT
AND MEANS ABOUTHT HE DIFFERENT LOANS AVAILABLE UNDER
THE STUDENT LOAN PROGRAM, INCLUDING QUALIFICATION
REQUIREMENTS, PROCESSES, AND REPAYMENT SCHEMES.”

SEC. 2. New sections to de determined as Sections 8-A, 8-B, and 8-C are hereby inserted
after Section 8 of the same Act to read as follows:
“SEC. 8-A, STUDENT DIRECT SUBSIDIZED LOAN. - THIS LOAN IS AVAILABLE
TO ANY STUDENT WHO GRADUATES FROM A DULY RECOGNIZED HIGH
SCHOOL AND DESIRES TO CONTINUE A VOCATIONAL OR COLLEGE
EDUCATION BUT NEEDS FINANCIAL ASSISTANCE TO COVER THE COST OF
HIGHER EDUCATION. IT HAS A LONGER REPAYMENT PERIOD AND MINIMAL

INTEREST PAYMENT.

A) QUALIFICATIONS ~ THE BORROWER PASSES THE ENTRANCE
EXAMINATION AND IS ADMITTED IN THE SCHOOL, COLLEGE,
OR UNIVERSITY WHERE THE BORROWER INTENDS TO
ENROLL.

“A BORROWER WHOSE ANNUAL FAMILY INCOME IS
BELOW THE POVERTY THRESHOLD AS CERTIFIED BY THE
DSWD OR THE LGU WHERE THE BORROWER RESIDES, SHALL,
BE GIVEN PRIORITY IN THE GRANT OF STUDENT DIRECT
SUBSIDIZED LOAN.

B) MAXIMUM LOANABLE AMOUNT - THE MAXIMUM AMOUNT OF
THE DIRECT SUBSIDIZED LOAN THAT MAY BE AVAILED OF BY
THE BORROWER SHALL BE BASED ON THE COST OF THE
INTENDED COURSE OR STUDY PROGRAM AS DETERMINED BY
THE CHED, IN CONSULTATION WITH THE HEIs, IN CASE OF A

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D)

COLLEGE COURSE, OR TESDA, IN CASE OF TVETs. IT SHALL
COVER TUITION FEES, SCHOOL FEES AND EDUCATION-
RELATED EXPENSES, INCLUDING BOARD AND LODGING, AND
SUBSISTENCE. THE LOAN AMOUNT COVERING TUTITION
FEES, SCHOOL FEES, AND EDUCATION-RELATED EXPENSES
SHALL BE RELEASE ON SEMESTRAL BASIS WHILE THE
AMOUNT INTENDED FOR BOARD AND LODGING, AND
SUBSISTENCE SHALL BE RELEASED MONTHLY.

INTERESTS —~ NO INTEREST PAYMENT SHALL BE IMPOSED
DURING THE FIRST FIVE YEARS OF THE REPAYMENT PERIOD.
THEREAFTER, THE LOAN SHALL BEAR AN INTEREST OF TWO
PERCENT (2%) PER ANNUM.

LOAN REPAYMENT ~ THE LOAN BECOMES DUE ONE (1) YEAR
AFTER THE BORROWER HAD FINISHED THE ENTIRE COURSE,
OR LEFT THE SCHOOL FOR GAINFUL EMPLOYMENT, OR
FAILED TO ENROLL WITH THE REQUIRED ACADEMIC LOAD
OF TWELVE (12) UNITS.

“THE LOAN SHALL BE PAID OVER THE MAXIMUM PERIOD

OF TWENTY (20) YEARS. THE BORROWER MAY OPT TO
CHOOSE THE REPAYMENT PLAN INCLUDING THE PERIOD TO
PAY THE LOAN: PROVIDED, THAT IS WITHIN THE PERIOD. THE
INITIAL PAYMENT SHALL BE MADE ONE (1) YEAR AFTER
EMPLOYMENT OF THE BORROWER.
“THE BORROWER MAY APPLY FOR THE DEFERMENT OR
CANCELLATION OF THE LOAN AT ANY TIME SUBJECT TO THE
APPROVAL OF THE CHED AND AFTER CONSIDERATION OF
THE INCOME AND THE REPAYMENT THRESHOLD OF THE
BORROWER.

“THE CHED SHALL PROVIDE A SPECIAL SCHEME OF
SUBSIDIZED STUDENT LOAN PROGRAM FOR INDIGENOUS
PEOPLE AND PERSONS WITH DISABILITIES WHO WANT TO
PURSUE HIGHER EDUCATION.

“SEC 8-B. STUDENT DIRECT UNSUBSIDIZED LOAN, - THIS LOAN IS AVAILABLE.
TO HIGH SCHOOL GRADUATES, COLLEGE GRADUATES, OR PROFESSIONALS
WHO WISH TO PURSUE HIGHER EDUCATION.


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“A) QUALIFICATION ~ THE BORROWER PASSES THE
ENTRANCE EXAMINATION AND IS ADMITTED IN THE SCHOOL,
COLLEGE, OR UNIVERSITY WHERE THE BORROWER INTENDS
TO ENROLL.
“B) MAXIMUM LOANABLE AMOUNT - THE SCHOOL,
UNIVERSITY, OR HEI WHERE THE BORROWER INTENDS TO
ENROLL SHALL DETERMINE THE MAXIMUM LOANABLE
AMOUNT BASED ON THE COST OF THE INTENDED COURSE OR
STUDY PROGRAM, SUBJECT TO THE APPROVAL OF THE CHED,
OR TESDA IN CASE OF TVET.
“C) INTERESTS ~ THE DIRECT UNSUBSIDIZED STUDENT
LOAN SHALL BEAR AN INTEREST DURING THE SCHOOLING
AND REPAYMENT PERIOD. THE INITIAL INTERREST OF THE
UNSUBSIDIZED LOAN SHALL BE THREE PERCENT (3%) PER
ANNUM THEREAFTER, THE CHED SHALL FIX THE ANNUAL
INTEREST RATE OF THE LOAN.
“IN CASE THE BORROWER FAILS TO PAY THE INTEREST
OF THE LOAN, IT IS ADED TO THE PRINCIPAL AMOUNT OF THE
LOAN
“D) LOAN REPAYMENT — THE REPAYMENT PERIOD IS TEN
(10) YEARS BUT THE LOAN IS DUE AND DEMANDABLE SIX (6)
MONTHS AFTER GRADUATION OR AFTER LEAVING THE
SCHOOL UNIVERSITY, OR HIGHER EDUCATION INSTITUTION.
“SEC 8-C. FAMILY EDUCATION LOAN. - THIS LOAN IS AVAILABLE TO
PARENTS TO FINANCE THE EDUCATION OF THEIR CHILDREN. PARENTS ARE
REPONSIBLE TO PAY THE LOAN AND ITS INTERESTS. THE CHED SHALL FIX
THE INTEREST RATE OF THE LOAN. REPAYMENT OF THE PRINCIPAL AND
INTEREST COMMENCE ON THE FIRST MONTH OF THE SEMESTER THAT THE
STUDENT IS ENROLLED. AVAILMENT OF THE LOAN IS SUBJECT TO THE
APPROVAL OF THE CHED AFTER CONSIDERING THE PARENTS SOURCES OF
INCOME.”

SEC.3. Implementing Rules and Regulation — Within ninety (90) days from the
effectivity of this Act, the CHED shall, in consultation and coordination with the Secretary of
Education, Secretary of Labor, Secretary of the Interior and Local Government, chairpersons of the
GSIS and SSS, and students; organizations, promulgate the necessary rules and regulations for the

effective implementation of this Act.


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2 SEC.4. — Effectivity Clause. — This Act shall take effect fifteen (15) days after its
3 publication in the Official Gazette or in a newspaper of general circulation.

Approved,