Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

House Bill No.

INTRODUCED BY HON. MARCELINO “MARCY” R. TEQDORO

EXPLANATORY NOTE
Article XIV of the Philippine Constitution declares:

“Section 1. 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

Section 2. The State shall:
20000

(2) Establish and maintain a system of free public education in the
elementary and high school levels. Without limiting the natural right of parents to
rear their children, elementary education is compulsory for all children of school
age

(3) Establish and maintain a system of scholarship grants, student loan
programs, subsidies, and other incentives which shall be available to deserving
students in both public and private schools, especially the underprivileged.”

Despite, however, the different programs implemented and being
implemented by the government, for a good number of Filipinos, post-secondary
education remains an elusive dream. High cost of education has been hindering
poor but talented students from pursuing a career, ultimately depriving our
country a chance to follow our collective vision of economic progress and political
stability.

This bill seeks to assist and support poor but deserving students wanting
to pursue an inevitably expensive post-secondary education through the
strengthening of the Study Now Pay Later Plan.

Therefore, approval of this bill is earnestly sought,

Auvte furm—~
MARCELINO R. TEODORO.

Representative, 1* District
City of Marikina


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session
365

House Bill No.

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO.

AN ACT
STRENGTHENING THE “STUDY NOW PAY LATER PLAN” FOR POST-
SECONDARY EDUCATION AND FOR OTHER PURPOSES

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

SECTION 1. Short Title - This Act shall be known as the “Reformed
Study Now Pay Later Plan Act of 2010”

SECTION 2. Statement of Policy — It is the declared policy of the State to
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. Further, it
is a declared State policy to establish and maintain a system of scholarship
grants, student loan programs, subsidies, and other incentives which shall be
available to deserving students in both public and private schools, especially to
the underprivileged. For these reasons, the Study Now Pay Later Plan is hereby
strengthened to provide for a more effective loan assistance program, and to
institute a system for efficient loan collection. .

SECTION 3. Definition of Terms.

(1) “Study Now Pay Later Plan” refers to the government educational
scholarship program designed to promote democratization of access to
educational opportunities in post-secondary level to poor but deserving students
through financial assistance in the form of an educational loan.

(2) “Loan Trust Fund” refers the funds held in trust by CHED and
TESDA for the operationalization of the Study Now Pay Later Plan (SNPLP).

(3) “Loan Trust Fund Board” refers to the goveming body that shall
formulate policies, standards, guidelines, and rules and regulations necessary for
the operation, management, and supervision of the Loan Trust Fund and the
SNPLP.

(4) “Post-secondary education” refers to the education and training in
non-degree vocational and technical courses offered in post-secondary
vocational and technical education institutions, or education in degree courses
offered by higher educational institutions, the completion of which are attested by
a certificate or diploma issued by or with Permission of the Technical Education
and Skills Development Authority (TESDA) or the Commission on Higher
Education (CHED). respectively


(5) “Poor but deserving students” refers to students qualified under this
Act with parents/guardians having a gross annual income of not more than
180,000.00, and who have the ability to continue and finish a post-secondary
education. Provided, that they are currently enrolled or intend to enroll in any of
the priority courses subsequently identified and determined by CHED or TESDA,
as the case may be

SECTION 4. Loan Trust Fund Board. To carry out the purposes of this
Act, there is hereby created a Loan Trust Fund Board, hereinafter referred to as
the “Board”, a governing body that shall formulate policies, guidelines, and rules
and regulations necessary for the operation, management and supervision of the
Loan Trust Fund and SNPLP

SECTION 5. Composition of the Board. The Board shall be composed
of the Chairman of the CHED which shall serve as the Chairman of the Board,
Executive Director of TESDA which shall serve as the Vice-Chairman, and one
(1) representative each from the following offices as members: National Bureau
of Investigation; Bureau of Internal Revenue; Government Social Insurance
System; Social Security System; Senate Committee on Education, Arts and
Culture, and; Committee on Higher and Technical Education of the House of
Representatives.

SECTION 6. Powers and Functions. The Board shall have the following
functions:

(1) Create a unit within CHED and TESDA that shall manage the lending of loan
to student borrowers in various post-secondary educational institutions (higher
education institutions and vocational and technical education institutions) and be
the repository of the data and information about the loan borrowers of the
SNPLP;

(2) Institute a system within GSIS and SSS that automatically withhold a portion
of the contributions of members who are SNPLP loan borrowers as loan
repayment and deposit the amount to the Loan Trust Fund;

(3) Institute a system within BIR that provides Tax Identification Number (TIN) to
student loan borrowers and tracks their whereabouts; and

(4) Institute a system within NBI to withhold clearance of applicants with unpaid
loans from SNPLP

SECTION 7. Management of SNPLP. The management and supervision
of SNPLP shall be the primary responsibility of CHED and TESDA, which must
necessarily include the following specific functions:

(1) Plan, implement, monitor annual work programs, evaluate, and submit annual
reports in pursuance of the objectives of this Act:

(2) Conduct investigation, receive documentary proof, and determine who are the
eligible underprivileged students based on the provisions in this Act;

(3) Maintain and regularly update every six (6) months, the list of underprivileged
student to avail of the loan assistance and the list of priority courses to be
offered;


(4) Issue certificates which shall be valid anywhere in the country as proof of the
eligibility of the underprivileged student to avail of the loan assistance:

(5) Cancel the certificates issued based on the grounds under Section 12: and

(6) Perform such other functions as may be reasonably necessary for the
implementation of this Act.

SECTION 8. Loan Trust Fund. The Board shall establish a Loan Trust
Fund for CHED and TESDA. Seventy per cent (70%) of the funds allocated for
CHED and TESDA annually to through their various financial assistance
programs shall go to the Loan Trust Fund of the SNPLP. Likewise, the amount
derived from loan repayments of borrowers, which include payment for the
principal and interests, shall go accrue to the Loan Trust Fund

SECTION 9. Entry Requirements. Eligible students under this Act shall
have the following entry requirements:

4. Filipino citizen;

2. Currently enrolled or intend to enroll in any of the priority courses to be
determined by CHED or TESDA, as the case may be;

3. Not more than 30 years of age at the time the application for loan;

4, With 75 percentile rank or above in the National Secondary
Achievement Test (NSAT);

5. Have a weighted average of 2.5 or higher in the last semester in
college, if attended any;

6. With parents/guardians having a gross annual income of not more than
P180,000.00; and

7. Not presently enjoying any scholarship or study grant

SECTION 10. Interest Rate and Loan Collection Scheme. In the
formulation of policies regarding the interest and loan repayment or collection
scheme for SNPLP, the following principles must be observed

(a) Any loan granted shall be paid by the student-debtor after he
has finished the course or profession for which the proceeds of
the loan were expended, but only after a period of two [2] years
from the time he has acquired an employment. Provided, that
the government shall endeavor to give ample assistance to
students under the program in obtaining possible employment.

(b) Voluntary repayment of loans shall start anytime the loan
borrower wants to pay;

(c) Interest at the rate of not more than six percent [6%] per annum
shall be applied to the loan or the balance thereof. The Board
shall formulate a Loan Collection Scheme Table as guide of the
deputized bank and all concerned agencies in computing
interest rates;

(d) The GSIS and SSS shall automatically deduct from the
contribution of the members who are loan borrowers the


repayments for SNPLP. The Board shall determine the amount
to be withheld by GSIS and SSS from the contribution of
members who are SNPLP loan borrowers. Provided, however,
the GSIS and SSS members who are SNPLP loan borrowers
can opt to pay directly to any branch of the government bank
deputized to receive loan repayments.

) The list of loan borrowers who are due for payment shall be
submitted by CHED and TESDA to the BIR for tracking
purposes, to GSIS and SSS for automatic deduction of certain
amount from the contributions of members who are loan
borrowers, and to NBI for those applying for clearance; and

0) A certificate signifying payment of the SNPLP loan must be
secured by the loan borrower from a deputized bank with the
concurrence from CHED and TESDA before NBI issues
clearance.

SECTION 11. Loanable Amount. The Board shall determine the
maximum amount that can be availed of by student loan borrowers. Educational
loans under this Act may cover matriculation and other school fees and
educational expenses for books, subsistence, and board and lodging. Provided,
that amounts covering payments for tuition and other school fees shall be paid
directly to the school concerned.

SECTION 12. Limitation. The right of any qualified student to avail
himself of the loan assistance under this Act shall not apply when:

(1) He fails for one (1) school year in the majority of the academic subjects in
which he has enrolled during the course of his study unless such failure is due to
some valid cause beyond his control;

(2) He fails to finish his course within four (4) semesters after the semester within
which he should have graduated;

(3) He stops schooling for one (1) school year unless such is due to some valid
cause beyond his control; and

(4) He is convicted of any crime.

SECTION 13. Implementing Rules and Regulations. The CHED,
TESDA, and other agencies concerned shall, within sixty (60) days from the
effectivity of this Act, issue such rules and regulations necessary for the proper
implementation of the provisions hereof.

SECTION 14. Appropriations. For its initial implementation, the amount
necessary to carry out the provisions of this Act shall be charged from the budget
of concerned government agencies. Thereafter, such sum as may be necessary
for its continued implementation shall be included in the annual General
Appropriations Act.

SECTION 15. Repealing Clause. All laws, decrees, executive orders or
parts thereof inconsistent with the provisions of this Act are hereby repealed,
amended or modified accordingly.


SECTION 16. Separability Clause. If any provision of this Act is held
invalid or unconstitutional, other provisions not affected shall continue to be in full
force and effect.

SECTION 17. Effectivity. This Act shall take effect fifteen (15) days after
its complete publication in at least two (2) newspapers of general circulation.

Approved,