Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
EXPLANATORY NOTE 
According to the Multidimensional Poverty Index (MPI) published by the Philippine 
Statistics Authority (PSA), 49.4% or roughly half of Filipino families in 2017 lacked 
access to basic education.1 Moreover, the Department of Education (DepEd) said that 
the total number of enrollees for SY 2020-2021 in the basic education sector has 
dropped to only 77% of the enrollment in the previous year. 
This bill proposes to institutionalize a Study Now, Pay Later program for students in 
public and private educational institutions to ensure that their education does not suffer 
due to financial difficulties. This measure enables parents and students can directly 
access loans from the Development Bank of the Philippines (DBP) and the Land Bank of 
the Philippines (LBP), while schools can discount from the same financial institution the 
promissory notes of students and parents with pending loans. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
November 10, 2022
2:54 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
ESTABLISHING THE STUDY NOW, PAY LATER 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. Short Title. – This Act shall be known as the “Study Now, Pay Later Act.” 
Section 2. Declaration of Policy. – The State recognizes and reiterates the 
Constitutional policy to protect and promote the right of all citizens to quality education at 
all levels and the complementary roles of public and private educational institutions in the 
educational system. Pursuant to this policy, the State shall ensure that all citizens of the 
Philippines are given access to quality education, either through the public or private 
educational system. In addition, the State shall ensure that the education of all students 
is not unnecessarily suspended or terminated due to lack of financial resources, by 
creating an accessible and affordable loan program that will enable students to continue 
their education despite financial difficulties. 
Section 3. Establishment of Study Now, Pay Later Program. – There is hereby 
created a Study Now, Pay Later Program (SNPL) under the supervision of the 
Department of Education (DepEd) for K-12 students, the Commission on Higher 
Education (CHED) for tertiary education students, and the Technical Education and Skills 
Development Authority (TESDA) for technical vocational students. The Program shall be 
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jointly implemented with the Development Bank of the Philippines (DBP) and the Land 
Bank of the Philippines (LBP) for the disbursement of the loan, and/or the discounting of 
promissory notes issued to educational institutions. 
 
Section 4. SNPL Components. – The SNPL shall have two components: 
 
(a)   Student Loan, where students who lacks necessary funds can take out a loan from 
the DBP or LBP for the payment of their tuition and other school fees, and 
reasonable living expenses; 
 
(b)   Discounting of Promissory Notes, where educational institutions that have 
promissory notes issued by students with outstanding balances can discount these 
notes to the DBP or LBP for cash. 
 
Provided, that nothing herein shall limit the DepEd, CHED, TESDA, LBP, and DBP from 
adopting other measures that will further the implementation of this Act. 
 
Section 5. Interest Rate Subsidy. – The SNPL shall provide loan interest rate subsidy 
to all students who avail of the loan under the SNPL.  
 
Section 6. Repayment Terms. – The student loans extended under the SNPL shall be 
payable within a reasonable period, but in no case be less than one (1) year from the 
time of the loan; Provided, that in case of student loans granted to tertiary education and 
vocational and technical education, the loan shall, as far as practicable, be payable only 
once the student has procured an employment with an appropriate salary, as may be 
determined by the CHED or TESDA, in consultation with the Unified Student Financial 
Assistance System for Tertiary Education (UniFast) Board. 
 
Section 7. Funding. – An amount of One Billion Pesos (Php1,000,000,000.00) shall be 
appropriated for the initial implementation of this Act. Thereafter, an amount not less than 
One Hundred Million Pesos (Php100,000,000.00) shall be annually appropriated in the 
appropriations act. 


 
 
 
Section 8. Implementing Rules and Guidelines. – Within sixty (60) days from the 
effectivity of this Act, the DepEd, CHED, TESDA, LBP, and DBP, in consultation with 
appropriate government agencies and other relevant stakeholders, shall formulate the 
rules and regulations to effectively implement the provisions of this Act. 
 
Section 9. Separability Clause. – Any portion or provisions of this Act that may be 
declared unconstitutional or invalid shall not have the effect of nullifying other portions 
and provisions hereof as long as such remaining portions or provisions can still subsist 
and be given effect in their entirety. 
 
Section 10. Repealing Clause. – All laws, decrees, executive orders, proclamations 
and administrative regulations, or any parts thereof inconsistent with the provisions of 
this Act are hereby revoked, repealed or modified accordingly. 
 
Section 11. Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national papers of general circulation or in the Official 
Gazette. 
 
Approved,