EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE 
S. No. 1939
December
DATC
T»ME
BJLLS
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
ESTABLISHING THE COLLEGE LIVING EXPENSES FINANCING (CLEF) 
PROGRAM TO SUPPORT HIGHER STUDIES OF FILIPINO STUDENTS OF 
GOOD ACADEMIC STANDING, MANDATING THE NATIONAL GOVERNMENT 
TO SET UP A LOAN GUARANTEE FUND ON STUDENT LOANS TO BE 
PROVIDED BY THE DEVELOPMENT BANK OF THE PHILIPPINES (DBP) AND 
THE LAND BANK OF THE PHILIPPINES (LBP), APPROPRIATING FUNDS 
THEREFOR AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Republic Act. No. 10931 provides that quality education is an inalienable right 
of all Filipinos and it is the policy of the State to protect and promote the rights of all 
students to quality education at all levels. Therefore, the State shall take appropriate 
steps to make such education accessible to all.
Republic Act No. 10687, otherwise known as the Universal Access to Quality 
Tertiary Education Act, provides for free tuition and exemption of other fees for 
students of state colleges and universities. While this significantly contributes in 
making quality education accessible to all, it must be noted that there are a lot more 
factors that hinder the attainment of this desired goal. Although there are existing 
scholarships and grants and with the passage of Republic Act No. 10687, their scope 
is still limited.
Thus, this bill seeks to cover other expenses that come with studying, such as 
board and lodging, pocket money, transportation costs, food expenses, uniforms and


personal clothing, books and supplies and other miscellaneous expenses. Moreover, 
this bill seeks to alleviate the burden that the students face by offering them student 
loans with minimal interest.
In view of the foregoing, early passage of this bill is earnestly requested.
MA
- "LITO"^. LAP


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE 
S. No. 1939
^^RECflVfO-
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li 11 rt * xr • December 7 2020 ml
PATC-------------------------
TtMP*-04:54 Pm
Introduced by Senator Manuel "Lito" M. Lapli
BY
INDEX.
AN ACT
ESTABLISHING THE COLLEGE LIVING EXPENSES FINANCING (CLEF) 
PROGRAM TO SUPPORT HIGHER STUDIES OF FILIPINO STUDENTS OF 
GOOD ACADEMIC STANDING, MANDATING THE NATIONAL GOVERNMENT 
TO SET UP A LOAN GUARANTEE FUND ON STUDENT LOANS TO BE 
PROVIDED BY THE DEVELOPMENT BANK OF THE PHILIPPINES (DBP) AND 
THE LAND BANK OF THE PHILIPPINES (LBP), APPROPRIATING FUNDS 
THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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SECTION 1. Short Title. This Act shall hereinafter be referred to as the '''College 
Living Expenses Financing (CLEF) Act'.
SECTION 2. Declaration of Policy. Republic Act. No. 10931, otherwise known 
as the "Universal Access to Quality Tertiary Education Act," provides that quality 
education is an inalienable right of all Filipinos and it is the policy of the State to 
protect and promote the rights of all students to quality education at all levels. 
Therefore, the State shall take appropriate steps to make such education accessible 
to all.
Moreover, Republic Act No. 10687, otherwise known as "Unified Student 
Financial Assistance System for Tertiary Education (UniFAST) Act," provides that the 
State shall provide adequate funding and such other mechanisms to increase the 
participation rate among all socioeconomic classes in Tertiary Education, especially


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the poor, thereby promoting equitable and Rationalized Access by poor Filipinos to 
quality Tertiary Education.
In furtherance of these policies, it is further declared the policy of the State to 
promote the capacities of all citizens to improve their lives and life chances by way of 
greater and enhanced access to financial resources towards achieving for themselves 
quality higher education.
SECTION 3. Coverage. The CLEF program shall be made available to all Filipino 
students who are either currently enrolled at the time of the effectivity of the Act, or 
admitted to enroll at any time thereafter, in courses leading to a bachelor's degree in 
any higher educational institution accredited by the Commission on Higher Education 
(CHED).
SECTION 4. Nature of the Financial Assistance. The CLEF Program is a long­
term personal loan program designed to provide for the living expenses of Filipino 
college students. Living expenses shall cover, but not limited to, the following:
(a) Board and lodging;
(b) Living allowance;
(c) Transportation costs;
(d) Food expenses;
(e) Uniforms and personal clothing;
(f) Books and supplies;
(g) Internet and digital connectivity expenses;
(h) Other miscellaneous expenses
The loan shall be provided by and disbursed through the Land Bank of the 
Philippines and Development Bank of the Philippines.
. Each eligible student shall be entitled to a maximum loan amount of P50,000 
per semester or enrollment and a maximum of P400,000 allowing for up to five (5) 
years of college enrollments. The maximum loan amounts set forth therein may be


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adjusted every five (5) years on the basis of improvements in the standards of living, 
as may be determined by the disbursing financial institutions in consultation with the 
CHED and the Philippine Statistics Authority (PSA).
The loan shall have a maximum term of twenty-five (25) years, an interest rate 
of lower than the prevailing interest rate subject to the discretion of the disbursing 
financial Institutions, and a grace period on principal and interest payments so that 
amortizations shall start one (1) year from the date of graduation or the end of the 
last semester of enrollment, whichever is later.
The administration of the CLEF Program shall be a shared responsibility of the 
(1) CHED, which shall process and endorse the loan application requirements of 
eligible students, and (2) the disbursing financial institutions, which shall release the 
amounts based on an approved disbursement program agreed with the student.
SECTION 5. Credit Guarantee by National Government In order to cover for 
the risk exposures of the disbursing banks, the CLEF Guarantee Fund is hereby created 
within the Philippine Guarantee Corporation (PHILGUARANTEE), which shall be funded 
by yearly appropriations from the national government in the amount of ten billion 
pesos (P10,000,000,000.00) over the next ten (10) years to be deposited with the 
National Treasury. The CLEF Guarantee Fund may support loans to the students up to 
five (5) times of its nominal value. The endorsement of the Unified Student Financial 
Assistance System for Tertiary Education (UniFAST) Board shall be sufficient basis for 
the credit guarantee for the specific beneficiary student.
SECTION 6. Tracking and Monitoring. Consistent with its mandate under 
Republic Act No. 10678 and Republic Act No. 10931, the UniFAST Board shall monitor 
and track the progress of the student loan beneficiaries under the CLEF Program to 
ensure that minimum academic standards of educational achievements are met. For 
purposes of encouraging good student performance. Sections 11, 12, and 13 of 
Republic Act No. 10687 shall also apply to the CLEF Program.


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For purposes of tracking after graduation or ieaving coiiege without graduating, 
Section 15 (r) of Repubiic Act No. 10687 shaii aiso appiy to CLEF beneficiaries as part 
of the ioan contract that they shaii sign.
SECTION 7. Implementing Rules and Regulations. Within thirty (30) days from 
the effectivity of this Act, the CHED and the UniFAST Board shaii consuit with the iocai 
government ieagues, and officiate from the Bureau of Treasury, LandBank, 
Deveiopment Bank of the Phiiippines, and other stakehoiders and promuigate the 
Impiementing Rules and Regulations necessary for the proper implementation of this 
Act.
SECTION 8. 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 continue to be in fuli force and effect.
SECTION 9. Non-Impairment Clause. Nothing in this Act shaii be construed as 
to diminish, impair, or repeal rights recognized, granted, or made available to 
disadvantaged, marginalized, or specific sectors under existing laws.
SECTION 10. Repealing Clause. All laws, executive orders, presidential decrees, 
implementing ruies and reguiations inconsistent with this Act are hereby repeated or 
modified accordingly.
SECTION 11. Effectivity. This Act shall take effect fifteen (15) days after its 
pubiication in the Official Gazette or in two newspaper of general circulation.
Approved,