Republic of the Philippines
HOUSE OF REPRESENATIVES
Quezon City
SEVENTEENTH CONGRESS
First Regular Session

5581

House Bill No.

Introduced by Representative H. Harry L. Roque Jr.

AN ACT PROVIDING FOR A FULL TUITION SUBSIDY FOR STUDENTS ENROLLED IN STATE UNIVERSITIES
AND COLLEGES (SUCs), AND APPROPRIATING FUNDS THEREOF

EXPLANATORY NOTE

In the 1987 Constitution, the sovereign people have audaciously proclaimed "the right of all citizens
to quality education at all levels” mandating the State to “take appropriate steps to make such
education accessible to all.” Inline with the State policy of accessible public education, basic and
secondary education are made available free-of-cost to every Filipino child through the public
education system. Thus, every Filipino is guaranteed the right to education up to the high schoo!

level

Tertiary education, however, is a completely different story altogether. Glaring inequity in access to
higher education continues to impede the Filipinos right to education at this pivotal level. In fact,
according to the 2013 Annual Poverty and Indicator Survey (APIS), half of college-age youngsters;
were unable to pursue higher education due to financial constraints or the need to work and earn
for the family. The financial difficulties of many families that simply cannot afford to send their
children to college deprives them of a powerful too! to lift themselves out of poverty -a college
degree.

‘The Family and Income Expenditure Survey (FIES) 2012 shows that a family headed by a college
graduate has an average family income more than two times larger than a family headed by a high
school graduate. This, combined with studies showing more significant private returns on

* Art, XIV, Sec, 1, 1987 Constitution. (Emphasis added)
? Wid


investment in higher education compared to secondary education’, demonstrated the singular
power of higher education in improving economic outcomes for the most marginalized segments of
‘our population. With such limited access to higher education, a vicious cycle emerges in which those
who would benefit the most from a college education are prevented from obtaining one due to
prohibitive costs.

The benefits of higher education, however, are not limited to the individual and his family. In terms
‘of human capital formation, State investment in human capital gives its citizens the knowledge and
ability to make the most of the limited resources available. This is what higher education provides,
giving countries an advantage in the current global shift toward knowledge-based economies. In
addition, higher education allows a country to produce and train more engineers and scientists who
play a vital role in the uptake of new technology. By innovating or replicating technologies from
more advanced economies, such specialists will contribute toward stimulating entrepreneurial
activity and in turn help in job creation’. Thus, producing a better-educated workforce has immense
implications on collective social and economic development, making inclusive growth a tangible

reality.

Given the individual and social advantages of higher education, it would be greatly beneficial to the
Philippines if higher education would be given the same level of importance as basic education and

secondary education. This would mean implementing a simple but revolutionary education reform -
the institutionalization of tuition-free tertiary education. instituting tuition-free tertiary education in

state universities and colleges (SUCS) would increase access to the P}

lippine higher education
system to the level of developed countries with firm commitments to public education, such as
Denmark, Finland, Germany, and Sweden, as well as strong emerging economies which have

followed in their footsteps, such as Brazil and Chile.

In 2014, the government fell short of its spending target, meaning there are funds that have not

been spent accordingly. For infrastructure alone, the shortfall amounted to P89 billion.” This is more

*Psacharopoulos, G., “Returns to Investment in Education: A Global Update”, 1994.
“CeydaOzsoy (2008) “The Contribution of Higher Education to Economic Develop-

ment”.
* Pena, Z.8.D., “Gov't infra spending falls below target in 2014”, The Philippine
Star, May 2015. <http://www.philstar.com/business/2015/05/01/ 1449761/govt-
infra-spending-falls-below-target-2014>


‘than enough to have funded tuition-free education for students in SUCs for at least the last five
power of higher education in improving economic outcomes for the most marginalized segments of
‘our population. With such limited access to higher education, a vicious cycle emerges in which those
who would benefit the most from a college education are prevented from obtaining one due to

prohibitive costs.

The benefits of higher education, however, are not limited to the individual and his family. In terms
‘of human capital formation, State investment in human capital gives its citizens the knowledge and
ability to make the most of the limited resources available. This is what higher education provides,

aiving countri

an advantage in the current global shift toward knowledge-based economies. in
addition, higher education allows a country to produce and train more engineers and scientists who
play a vital role in the uptake of new technology. By innovating or replicating technologies from
‘more advanced economies, such specialists will contribute toward stimulating entrepreneurial
activity and in turn help in job creation®, Thus, producing a better-educated workforce has immense
implications on collective social and economic development, making inclusive growth a tangible

reality.

Given the individual and social advantages of higher education, it would be greatly beneficial to the
Philippines if higher education would be given the same level of importance as basic education and

secondary education. This would mean implementing a simple but revolutionary education reform -
‘the institutionalization of tuition-free tertiary education. Instituting tuition-free tertiary education in

state universities and colleges (SUCS) would increase access to the PI

lippine higher education
system to the level of developed countries with firm commitments to public education, such as
Denmark, Finland, Germany, and Sweden, as well as strong emerging economies which have

followed in their footsteps, such as Brazil and Chile.

In 2014, the government fell short of its spending target, meaning there are funds that have not
been spent accordingly. For infrastructure alone, the shortfall amounted to P89 billion.’ This is more

“CeydaOzsoy (2008) “The Contribution of Higher Education to Economic Develop-
ment”.

7 Pena, 2.8.0., “Gov't infra spending falls below target in 2014”, The Philippine
Star, May 2015. <http://www.philstar.com/business/2015/05/01/ 1449761/govt-
infra-spending-falls-below-target-2014>


than enough to have funded tuition-free education for students in SUCs for at least the last five
years. For fiscal year 2014, the SUCs had an unutilized budget amounting to P5.64 billion.’ These
funds alone would make up approximately one-third (1 /3) of the estimated funding needed for
2016. And for the said fiscal year 2016, the government is running under a budget of about P3
trillion.” The sum required to make SUCS tuition-free in the country would amount to P126 to 16.4
billion’? which is about 0.42 to 0.55 percent of the 2016 budget, which is a reasonable and easily
justifiable budget appropriation to make considering the program’s vast positive effects on
individual and collective development.

Therefore, this legislation seeks to provide for a full tuition subsidy for all current and future
enrollees in SUCS. Qualified Filipino citizens will be able to avail of the full tuition subsidy, provided
they maintain good academic and moral standing. The tuition fees to be paid by the students will
instead be paid directly by the government to the SUCS.

It is time for us to secure, once and for all, the Filipino's right to higher education through decisive
action. Itis time for us to institute a reform which will ensure that

ions of deserving but
underprivileged young men and women will be given their rightful opportunity to pursue a college
degree. By passing this legislation, we are making a genuine and tangible collective commitment to

building the world-class education system that our people deserve.

‘The support for the passage and approval of this landmark legislation is earnestly sought.

COW

H. HARRY L. ROQUE, JR.

® COA: FY 2014 Annual Report on Approy
* Flores, M.F.E., “Up to P3 trillion eyed for 2016 budget”, Business World Online,

tions, Allotments, Obligations and Disbursements

April 26, 2015. http://www.bworldonline.com/content.php?section-TopStory&title=up-to-p3-
trillion-eyed-for-2016-budget&id/106843>.
*° CHED: State Universities and Colleges Statistical Bulletin 2013-2014


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Republic of the Philippines
HOUSE OF REPRESENATIVES
‘Quezon City
SEVENTEENTH CONGRESS
First Regular Session

: 5581

House Bill No.

Introduced by Representative H. Harry L. Roque Jr.

‘AN ACT PROVIDING FOR A FULL TUITION SUBSIDY FOR STUDENTS ENROLLED IN STATE UNIVERSITIES
AND COLLEGES (SUCs), AND APPROPRIATING FUNDS THEREOF

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 “Free Higher Education for All Act.”

SEC. 2, Declaration of Policy. - It is hereby declared that accessible and quality education is an.
inalienable right of the Filipino. Therefore, it shall be the policy of the State to make higher
education accessible to financially disadvantaged but deserving students. Towards this end, the
State shall renew its constitutionally mandated duty to make education its top budgetary priority by

Providing free higher education for students in State Universities and Colleges (SUCs).
SEC. 3. Definition of Terms. - As used un this Act, these terms shall mean:

a) Cast of Tertiary Education refers to (1) tuition, and Other School Fees, (2) Educational
Expenses, and (3) the cost of living allowance;

'b) Educational Expenses refer to expenses related to the education of a student, such as
books, school supplies, and electronic devices necessary for education, but excluding tuition
and miscellaneous and Other School Fees;

) Higher Education refers to the stage of formal education, or its equivalent, requiring,
‘completion of secondary education and covering programs of study leading to bachelor and
advanced degrees;

d) Higher Education Institution (HE!) refers to an institution of higher learning, primarily
offering bachelor and advanced degree programs;


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e} Other School Fees refer to those fees which cover other necessary costs supportive of
instruction, including, but not limited to, medical and dental, athletic, library, laboratory,

and miscellaneous fees;

f) State Universities and Colleges (SUCs) refer to public HEls established by national laws
which are financed and maintained by the national government, and are governed by their

respective independent boards of trustees or regents;

8) Technical-Vocational Education and Training (TVE T) refers to the post-secondary
education or training process which involves, in addition to general education, the study of
technical and related fields and the acquisition of practical skills relating to occupations in
various sectors, comprising formal (organized programs as part of the school systems) and
nonformal (organized classes outside the school system) approaches;

h) Technical-Vocational Institutes (TV/s) refer to learning institutions offering post-
secondary TVET

i) Tertiary Education refers to the stage of education following the secondary cycle which
subsumes post-secondary non-degree diploma, TVET, and Higher Education programs; and

i) Tuition Fee refers to the fee representing direct costs of instruction, training andother

related activities and for the students' use of the instruction and trainingfacilities;

k) Unified Student Financial Assistance System for Tertiary Education (UniAST) refers to the
harmonized, state-run and administered system of Higher Education and technical-

vocational Scholarships, Grants-in-Aid, Student Loans, and other modalities of StuFAP

created by Republic Act No 10867;

|) Student Financial Assistance Program (StuFAP) refers to a system of Scholarships, Grants-
in-Aid, Student Loans, subsidies and other incentives which are or shall be made available to

eligible students;

1m) Grant-in-Aid refers to a modality of financial assistance to poor but eligible students

which generally requires a minimum level of competence to complete Tertiary Educatior

1) Scholarship refers to a modality of financial assistance given to eligible students on the
basis of merit and/or talent, such as laudable academic performance, and special technical
proficiencies and skills and intellectual pursuits of a Scholar that give rise to research and

development, and innovations as well as other creative works;


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0) Student Loan refers to a modality of student financial assistance consisting of short-term
‘or long-term loans which shall be extended to students facing liquidity problems, regardless
of economic status, which shall be paid by the student, his/her parents, guardians, or co-
makers;

SEC. 4. Eligibility to the Full Tuition Subsidy. - All Filipino citizens who are either currently enrolled at
the time of effecti

of this Act, or shall enroll at any time thereafter, in courses in pursuance of a
bachelor’s degree, certificate degree, or any comparable undergraduate degree in any SUC shall
qualify for a full tuition subsidy; Provided, That they meet the admission requirements of the SUC;
Provided further, That all SUCs shall create a mechanism to enable students with the financial
capacity to pay for their education in the SUC to opt out of the tuition subsidy or to make a donation
to the school.

SEC. 5. Exceptions to the Full Tuition Subsidy. - The following are ineligible to avail of the full tuition
subsidy in SUCS:

a) Persons who have already attained a bachelors degree or equivalent degreefrom any
higher education institution, whether public or private; and

b) Persons who have been dishonorably discharged from any higher education institution,
whether public or private, for any reason other than financial difficulty in paying tuition and

other fees.

SEC. 6. SUC Tuition Subsidy Fund. - The SUC Tuition Subsidy Fund, hereinafter referred to as the Fund,
is hereby established. The Fund shall be used solely for the purpose

jplementing the full tuition
subsidy under the provisions of this Act. Tuition for units enrolled by persons eligible for the tuition
subsidy under the provisions of this Act, payable to SUCs, shall be sourced from this Fund.

SEC. 7. Administration of the Fund. - The Fund shall be administered by the Commission on Higher
Education (CHED), which shall have the following powers and functions:

a) Manage and administer the Fund;

'b) Devise a reporting mechanism to be implemented by the SUCs which willdetail the exact
amount of tuition subsidy availed of by persons eligible for the full tuition subsidy under this
Act;

©) Formulate and implement an efficient and transparent mechanism to ensure the payment
of the tuition subsidy, utilizing money from the Fund, to the respective SUCs, pursuant to
this Act;


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The submissions to CHED shall be subject to the Commi
Provided, That CHED shall have the right to request for additional information from the SUCs.

4) Resolve and mediate disputes concerning the ineligibility or disqualification of persons
from the full tuition subsidy under the provisions of this Act or any other provision of this

law; and

€) Any other powers or functions necessary for the implementation of the provisions of this
Act,

SEC. 8. Requirements for SUCs. - SUCs are hereby mandated to fulfill the following before accessing
the Fund:

a) Establish a qualifying mechanism, which shall be meritocratic and equitable. This shall
include but not be limited to a qualifying examination and an affirmative action mechanism

for financially disadvantaged students;

b) Determine and publish the maximum number of students the SUC can accommodate per
campus and degree program. For the initial implementation of this Act, the maximum
‘number of students SUCs may accept shall be equivalent to the total number of students
that were enrolled in the school year prior to the effectivity of this Act. For subsequent years,
SUCS may increase their number of students subject to conditions set by and upon the
approval of CHED;

©) Submit the following documents to assist the CHED in implementing this Act:
i. Previous enrollment rate, student demographics and other relevant information;

ii, Graduation rate, performance in previous licensure examinations, and

employability rate of graduates;
ili, Gross tuition receipts;
iv. Teachers’ welfare and training profiles; and

v. Other educational quality indicators, including but not limited to physical learning
infrastructures, teacher-to-student ratio and student housing; and

4) Formulate and submit to CHED and oversight committees in both Houses of Congress a
detailed SUC Development Plan updated every ten years, which shall include plans for
facilities and infrastructure development andexpansion.

jon’s determination of completeness.


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Provided further, that any plans of expansion shall be approved and defended before CHED and
Congress during the SUCs' budget hearing.

SEC. 9. Tuition Report. - The President of each SUC shall submit to the CHED, within five (5) days
after the last day of late registration for each semester, a report detailing the names of persons
eligible for the full tuition subsidy in their institution, as well as the amount of tuition due based on
the number of units enrolled,

SEC. 10. Payment from the Fund. - The CHED shall ensure the full payment of tuition due to the state
irty (30) days after the submission of
the report to the CHED; Provided, That the CHED shall reserve the right to withhold or disallow the

university or college, as reported under this Act, no later than

payment of any reported fees which are perceived to be anomalous or irregular until further

investigation has been conducted.

SEC. 11. Strengthening Student Financial Assistance Programs (StuFAP). ~The CHED, through
UniFAST, shall strengthen all scholarships, grants-in-aid, student loans, subsidies and other
incentives, to other educational expenses and cost of living allowance that will be incurred by

students in pursuing higher education in SUCs.

Moreover, StuFAP programs shall also be made available to cover the cost of tertiary education, fully

or partially, to students who wish to pursue tertiary education in other HEIs or TVIs.

SEC. 12. Appropriations. - The amount of Fifteen Billion Pesos (P15,000,000,000.00) is hereby initially
appropriated from the Presidential Social Fund for the SUC Tuition Subsidy Fund and to implement
the provisions of this Act. Thereafter, such amount necessary to effectively carry out the provisions

of this Act shall be included in the annual General Appropriations Act.

SEC. 13. Implementing Rules and Regulations. - Within sixty (60) days from the effectivity of this Act,
the CHED shall promulgate the implementing rules and regulations necessary for the

implementation of this Act.

SEC. 14. Separability Clause. - Should any provision herein be declared unconstitutional, the same

shall not affect the validity of the other provisions of this Act.

SEC. 15. Repealing Clause. - All laws, decrees, orders, rules, and regulations or other issuances or

parts inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 16. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official

Gazette or in two (2) newspapers of general circulation in the Philippines.

Approved,