THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
'04 JUL -1 R\O:O8 
First Regular Session 
) 
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Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
This bill seeks to create a National Student Loan Board to implement a National Student 
Loan Program for the poor, define its powers and functions and appropriate the necessary funds. 
The importance of providing access to higher education for the poor cannot be 
overemphasized. In the Philippines, only a little over 11% of our work force has a college 
education. Of the college age population, less than 50% are enrolled in tertiary educational 
institutions and about 70% are living below the poverty line. 
Under this proposed measure, the cross-subsidy program implemented by the University 
of the Philippines (U.P.) will be replicated on a nationwide scale. As such, under this proposed 
measure, a mandatory monthly contributions shall be made by persons within specific income 
brackets and that such fund collected shall go into the national student loan fund. These 
contributions will be graduated according to income bracket. Using the 1995 data from the 
Philippine Statistical Yearbook and the targeted contribution rates, annual contributions that will 
be collected under this proposed measure will amount to about Php 6 billion pesos a year. 
Indubitably, there is a great need to provide a national student loan program to assist the 
poor and the needy by giving them access to tertiary education. 
Indeed, we will only be able to attain our vision of becoming the next economic tiger of 
Asia by educating the less fortunate of our Filipino people. 
In view of the foregoing, the passage of this bill is earnestly requested 
\ 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
‘04 
JUL -1 
ATO:O8 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
.s.FIVED BY: 
S E N A T E  
S. B. No. 
1223 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
CREATING A NATIONAL STUDENT LOAN BOARD TO 
IMPLEMENT A NATIONAL STUDENT LOAN PROGRAM 
FOR 
THE 
POOR, 
DEFINING 
ITS 
IMPLEMENTING 
GUIDELINES, 
RULES 
AND 
REGULATIONS 
AND 
APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. - This Act shall be known as the “National Student Loan 
Program for the Poor Act of 2004.” 
SEC. 2. 
Creation. - There shall be created, under the Office of the President of 
the Philippines, in close coordination with the Department of Education (DepEd) and the 
Department of Social Welfare and Development (DSWD), a National Student Loan Board to 
implement a National Student Loan Program for the Poor. 
SEC. 3. 
Definition of Terms. - For the purpose of this Act, the following terms 
shall have the corresponding meaning: 
a) 
Iskolar ng Bayan - hereinafter called “Zskolar” shall refer to a qualified 
beneficiary who draws from the National Student Loan Fund to support his or her 
tertiay education; 
National Student Loan Fund - hereinafter called the “Fund” shall refer to a cross- 
subsidy benefit fund to be collected by the National Government and lent to 
qualified Iskolars as hereinafter defined; 
b) 


c) 
National Student Loan Board - hereinafter called the “Student Loan Board” shall 
refer to a governing body under the Office of the President tasked to implement 
the provisions of this Act; 
Board of Directors - hereinafter called the “Board” shall refer to the governing 
body of the Student Loan Board and shall exercise the powers and duties 
hereinafter defined; 
Monthly Contributions - hereinafter called “contributions” shall refer to the 
contributions of designated income earners to the Fund, based on the National 
Economic Development Administration OJEDA) income brackets; 
Iskolar Brackets - hereinafter called “brackets” shall refer to a beneficiary 
classification system wherein Iskolar ng Bayan shall be ranked according to the 
annual family income and/or academic performance in an immediately previous 
school term. 
d) 
e) 
f )  
SEC. 4. 
Composition of the Board - The National Student Loan Board created 
under this Act shall be composed of the following members: 
Chairperson - The Secretary of the Department of Education (DepEd), or hisher 
duly designated representative who should be an Undersecretary, shall be the 
Chairperson of the National Student Loan Board. The Secretary of the DECS 
shall receive per &ems to be paid for attendance in regular and emergency 
meetings called by the Board. 
Vice Chairman - The Secretary of the Department of Social Welfare and 
Development (DSWD), or hidher duly designated representative who should be 
an Undersecretary, shall be the Vice Chairman of the National Student Loan 
Board, The Secretary of the DSWD shall receive per diems to be paid for 
attendance in regular and emergency meetings called by the Board. 
Executive Director of the Student Loan Board - There shall be an Executive 
Director of the Student Loan Board to be appointed by the President of the 
Philippines. The Executive Director must be a natural-born citizen of the country, 
and must have passed the Career Executive Service Officers (CESO) 
examination. The Executive Director shall receive a monthly compensation 
equivalent to salary grade 28. The Executive Director shall serve a term of three 
(3) years and can be re-appointed for another one (I) term. 
Working Board Members - There shall be ten (10) Working Board Members, 
eight (8) members of whom shall come from the State Universities and Colleges, 
and two (2) from the private sector, all of whom shall be appointed by the 
President of the Philippines. Each Working Board Member shall receive a 


monthly compensation equivalent to salary grade 26 and shall have the 
organizational designation of "Managing Director" of a specific functional area of 
the Student Loan Board. The term of the Working Board Members shall be co- 
terminus with the term of the Executive Director. 
Ex-OfJicio Board Members - The Chairpersons of the Government Insurance 
Service System (GSIS), the Social Security System (SSS), the Philippine 
Overseas Employment Agency (POEA) and the Executive Director of the Student 
Loan Board shall be ex-oflcio members of the Board. They shall receive per 
diems to be paid for attendance in regular and emergency meetings called by the 
Board. The ex-ofJicio members of the board shall have no power to vote. 
5) 
SEC. 5. 
Powers and Functions of the National Student Loan Board - The 
powers and functions of the Board shall be as follows: 
To closely coordinate with NJ3DA in determining the income brackets and 
monthly contributions to the Fund; 
To promulgate the necessary guidelines, rules or regulations for the lending of 
funds for education to the poor; 
To appoint the necessary staff and/or employees for the National Student Loan 
Board; 
To allocate and disburse funds for the education of the poor; 
To cancel, suspend, or revoke loans in cases of deceit, fraud or cheating of any 
kind on the part of the borrower; 
To be the trustees for the Investment Portfolio of the Fund, which shall be created 
out of its excess over semestral operating and lending requirements; 
To appoint an investment manager for the Investment Portfolio, should it be 
deemed necessary: Provided, That such appointment should not exceed three (3) 
years, and subject to performance review prior to renewal; 
To report to the Office of the President on a monthly basis; and 
To perform such other powers and functions as may be deemed necessary by the 
President of the Philippines, pursuant to the provisions of this Act. 
SEC. 6. 
Meetings of the Board - The National Student Loan Board shall hold 
twelve (12) regular board meetings every year to be held every first Monday of the month. The 
Chairperson of the Board shall be the presiding officer. In the absence of the Chairperson, the 
Vice-Chairperson of the Board shall automatically take over. 


SEC. 7. 
Quorum for National Student Loan Board Meetings, - All regular and 
emergency meetings shall only be convened with a quorum of at least fifty percenturn (50%) 
plus one (1) of the regular Board Members. All meetings convened without the said quorum 
shall be deemed null and void. 
SEC. 8. 
Executive Committee of the Loan Boar& - There shall be created an 
Executive Committee of the National Student Loan Board composed of the Executive Director 
and the ten (10) Working Board Members. 
The Executive Committee, headed by the Executive Director shall have the following 
powers and functions: 
a) 
b) 
To recommend the approval of loan applications by the Board; 
To review, evaluate and assess programs, plans of action andlor agenda of the 
Board; 
To review, evaluate and assess the academic standing of loan borrowers; 
To implement the orders, rules, regulations and guidelines passed by the Board; 
To conduct annual spot and random inspections on borrowers; 
To conduct studies and researches for the improvement of educational services for 
the poor; 
To reprimand, suspend or dismiss erring officials and employees of the Student 
Loan Board based on the existing rules and regulations of the Civil Service 
Commission; 
To appoint the necessary staff andor employees for the Executive Committee of 
the National Student Loan Board; 
To recommend the cancellation or revocation of loans; and 
To perform such other powers and functions as may be determined by the Board 
c) 
d) 
e) 
f )  
g) 
j) 
h) 
i) 
SEC. 9. 
Student Loan Board Staff/ Employees. - The National Student Loan 
Board shall determine the number of staff / employees needed to cany out the functions of the 
Student Loan Board, subject to the rules and regulations of the Civil Service Law and rules. The 
Commission shall likewise provide for the qualifications and compensation of applicants based 
on the existing rules and regulations on the hiring of civil servants. 
SEC. 10. 
Plannifzg Model. - For purposes of developing the relevant implementing 
details of the National Student Loan Program, the Board shall use as a principal reference the 
Socialized Tuition Fee Assistance Program (STFAP) of the University of the Philippines. 


SEC. 11. 
Contributions. - All monthly contributions made to the Fund shall be 
deposited by the Board in the Development Bark of the Philippines (DBP) under the name of the 
National Student Loan Fund. 
SEC. 12. 
Znvestment Portfolio. - Funds in excess of the annual operating 
requirements of the Student Loan Board not covered by its allocation under the General 
Appropriations Act shall be transferred to an Investment Portfolio Fund. The interest to be 
derived out of the investment Portfolio shall be used to fund full scholarships for qualified 
Iskolurs in academic institutions of their choice: Provided, That such educational institutions are 
duly accredited by the DECS and are included in a list of qualified tertiary educational 
institutions prepared by the Board for this purpose 
SEC. 13. 
Contributor Income Bracket. - The Director-General of the National 
Economic and Development Authority (NEDA) is hereby directed to assist the Board in 
determining the income brackets o f  wage earners who shall be required to make contributions to 
the Fund within ninety (90) days after the effectivity of this Act. The contribution structure shall 
be progressive, from a minimum of %% of individual income bracket to a maximum of 4% of 
individual income bracket. 
SEC. 14. 
Beneficiary Loan Amount. - The loan available to an Iskolur shall be 
semestral, and shall be subject to the following terms and conditions: 
a) 
Availability - Iskolur ng Buyun loans shall be available only for undergraduate 
degree courses. This program shall not cover postgraduate courses. 
Loan size - loan amount shall be equivalent to the prevailing cost per academic 
unit at the University of the Philippines multiplied by twenty one (21) academic 
units. 
Loan repayment - loans shall carry an annual interest rate of 5%, payable over 
five (5) years commencing the first year after the graduation of the Iskolur. Loan 
amortization computation shall use the Straight-Line Method. Amortizations 
shall be deductible from salary in the case of employed graduate Iskolur or paid 
directly to the Fund in the case of self-employed graduate ofIskolms. 
Application - the loan shall be applicable to the school of choice of the Iskolur, to 
cover tuition and living allowance. Amounts in excess of the loan needed to 
cover the Iskolur’s needs shall have to be derived from other sources. 
Drawdown - Upon approval of a loan, an amount equivalent to the tuition of the 
Iskolar can immediately b drawn upon presentation of proof of registration. 
Balance can be drawn in five (5) equal monthly installments starting the first 
b) 
c) 
d) 
e) 


month of the semester in the case of schools using the semestral system, or four 
(4) equal monthly installments starting the first month of the trimester in the case 
of schools using the trimestral system. 
SEC. 15. 
Mandatory Contributions. - All income earners as determined under 
Section 9 above are hereby required to contribute to the Fund. Such mandatory contribution 
shall be based on NEDA income brackets. 
SEC. 16. 
Loan Repayments. - The Chairpersons of the Government Service 
Insurance System (GSIS), the Social Security System (SSS), the Civil Service Commission 
(CSC), the Department of Labor and Employment (DOLE) and the Philippine Overseas 
Employment Agency (POEA) are hereby directed to closely coordinate with the Board to 
determine the present occupational status of borrowers for purposes of loan repayments to the 
fund. 
SEC. 17. 
Tax Deductibility. - All contributions made to the Fund shall be 
deductible from taxable personal income. All loan repayments of graduate beneficiaries shall 
likewise be deductible from taxable personal income. 
SEC. 18. 
Appropriations. - The amount necessary for the effective implementation 
of this Act shall be taken out of the funds appropriated for the Office of the President. 
Thereafter, such amount as may be necessary for the continued operations of the Board shall be 
included in the annual General Appropriations Act. 
SEC. 19. 
Repealing Clause. - All laws, presidential decrees, executive orders, 
proclamations, rules and regulations which are inconsistent with the provisions of this Act are 
hereby repealed or modified accordingly. 
SEC. 20. 
Separability Clause. - If, for any reason, any section or provision of this 
Act shall be held unconstitutional or invalid, the other section or provision not otherwise affected 
shall remain valid. 
SEC. 21. 
Effeivify Clause. - This Act shall take effect fifteen (15) days from its 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved,