NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
Under Article XIV, Section 1 of the 1987 Constitution, it states 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”. 
With the passage into law of Republic Act 10687 or the Universal Access to Quality Tertiary 
Education Act, there is now free tuition and exemption of all other fees for students of state 
colleges and universities.  
While this is a very huge step in making quality education accessible to all, we must be 
reminded that the expenses that students have to bear does not only cover tuition and fees. 
There are other expenses that come with studying in college especially for those studying in 
colleges and universities in other provinces or cities, not where they live. There are also 
expenses for books, supplies and sometimes uniforms. 
In view of the foregoing, immediate approval of this measure is earnestly requested. 
RUFUS B. RODRIGUEZ 
May 3, 2023
4:06 pm
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NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
AN ACT 
TO ESTABLISH THE COLLEGE LIVING EXPENSES FINANCING (CLEF) PROGRAM TO 
SUPPORT HIGHER STUDIES FOR HUNDRED OF THOUSANDS MORE FILIPINO 
STUDENTS OF GOOD ACADEMIC STANDING, MANDATING THE NATIONAL 
GOVERNMENT AND LOCAL GOVERNMENT UNITS TO SET UP LOAN GUARANTEE 
FUNDS ON STUDENT LOANS TO BE PROVIDED BY BANKS, FINANCIAL 
INSTITUTIONS AND OTHER CREDIT PROVIDERS FOR THE CLEF PROGRAM, 
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Title. – This Act shall hereinafter be referred to as the “College Educational 
Expenses Financing (CLEF) Act.” 
SEC. 2. Declaration of Policy. – As proclaimed in R.A. 10931: “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.”  
R.A. 10687 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 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 its 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. 
SEC. 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 enrol at any 
time thereafter, in courses leading to a bachelor’s degree in any higher educational 
institution (HEI) accredited by the Commission on Higher Education (CHED). 
SEC. 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: 
•
board and lodging
•
pocket money
•
transportation cost
•
food expenses
•
uniforms and personal clothing
•
books and supplies
•
other miscellaneous expenses
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Each eligible student shall be entitled to a maximum loan amount of Php 50,000 per 
Semester or enrolment and a maximum of P400,000 allowing for up to five year of college 
enrolments. 
 
The loan shall have a maximum term of twenty five (25) years, an interest rate of 6% 
and a grace period on principal and interest payments so that amortizations shall start one 
year from the date of graduation or the end of the last semester of enrolment, whichever is 
later. 
 
The loan shall be provided by and disbursed through private or government banks, 
financial service entities accredited with the Bangko Sentral ng Pilipinas (BSP) and/or 
government financial institutions, including the Social  Security System (SSS), Government 
Service Insurance System (GSIS), or Home Development Mutual (Pag-IBIG) Fund. 
 
The administration of the CLEF Programs shall be a shared responsibility of the (1) 
CHED which shall process and endorse the loan application requirements of eligible 
students, (2) the financial institutions – which shall release the amounts based on an 
approved disbursement program agreed with the student, and (3) the collecting agent – 
which can be a bank, a financial service institutions, financial technology service (FinTech) 
accredited with the Bangko Sentral, the SSS, GSIS or Pag-IBIG. 
 
SEC. 5. Credit Guarantee by National Government and LGUs. – In order to encourage 
the banks and financial institutions to provide the needed resources for the Program, the 
CLEF Guarantee Fund is hereby created, which shall be funded by yearly appropriations 
from the national government in the amount of ten billion pesos (P10,000,000,000) over the 
next ten years to be deposited with the National Treasury.  In like manner, local government 
units (LGUs), including provinces, cities, municipalities and barangays, shall set aside a 
minimum of 2% of their Internal Revenue Allotments (IRA) as additional guarantee  support 
for CLEF loans to students from their respective constituencies, to be deposited with the 
Land Bank or Development Bank of the Philippines (DBP).  The guarantee funds may 
support loans to the students up to five times of its nominal value.  The endorsement of the 
UniFAST Board and/or the LGU concerned shall be sufficient basis for the credit guarantee 
for the specific beneficiary students. 
 
SEC. 6. Tracking and Monitoring. – Consistent with its mandate under R.A. 10687 and 
R.A. 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 food student performance, 
Sections 11, 12 and 13 of R.A. 10687 shall also apply to the CLEF Program. 
 
For purposes of tracking after graduation or leaving college without graduating, 
Section 15 (r) of R.A. 10687 shall also apply to CLEF beneficiaries as part of the loan 
contract that they shall sign. 
 
SEC. 7. Implementing Rules and Regulations. – Within thirty (30) days from the effectivity 
of this Act, the UniFAST Board shall consult with the local government leagues, and officials 
from the Bureau of Treasury, Bankers Association of the Philippines, Land Bank, 
Development Bank of the Philippines, SSS, GSIS, Pag-IBIG, and other stakeholders and 
promulgate the Implementing Rules and Regulations necessary for the proper 
implementation of this Act. 
 
SEC. 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 full force and effect. 
 
SEC. 9.  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. 
 


SEC. 10. Repealing Clause. – All laws, executive orders, presidential decrees, 
Implementing Rules and Regulations inconsistent with this Act are hereby repealed or 
modified accordingly. 
 
SEC. 11. Effectivity. – This Act shall effect fifteen (15) days after its publication in the 
Official Gazette or in two newspapers of general circulation. 
 
Approved,