REPUBLIC OF THE PHILIPPINES 
) 
FOURTEENTH CONGRESS 
) 
Second Regular Session 
) 
SENATE 
i 
Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
To be able to bring out the best in students, it is my humble opinion that 
only the best teachers will be able to bring them out. 
This legislation that is being sought to be passed does not seek to provide 
for the best teachers to teach in educational institutions, it seeks to provide for 
the most passionate teachers to teach, and so, insures that it will bring out the 
best in the students accordingly. 
Passion can be said to be an existing trait in these former students 
because, knowing that the students they are teaching came from the very 
situation that they were once in, their passion to teach will be unmatched, as it 
will be incumbent upon ,them to make sure that the maximum learning and 
knowledge shall be inculcated upon these individuals. 
If passion and learning coincide, the only benefit it will bring are good 
benefits that will inure to our countrymen in general, and the students in 
particular. 


FOURTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
SENATE 
, 
Introduced by Senator Manny Villar 
AN ACT 
PROVIDING FOR TEACHING SERVICE AS PAYMENT FOR EDUCATIONAL 
LOANS DRAWN FROM PUBLIC FUNDS, INCLUDING TUITION SUBSIDIES 
FOR STUDENTS OF STATE UNIVERSITIES AND COLLEGES 
Be it enacted by the Senate and fhe House of Representatives in 
Congress assembled: 
Section I. 
Title. -This Act shall be known as the “Service to Pay Act”. 
Section 2. Declaration of Policy. - It is the policy of the State to promote 
and make quality education accessible to all Filipino citizens. Further, it is the 
policy of the State to inculcate in the youth patriotism and nationalism, and 
encourage their involvement in public and civic affairs. Towards this end, the 
State shall provide mechanism to ensure that civic-mindedness and service 
orientation shall be inculcated in the youth, and at the same time, ensure that 
education will retain the best and the brightest pool of talents. 
Section 3. Service to Pay. - 
(a) Covered students as defined by the succeeding subsection shall be 
required to render service by teaching primary and secondary students in 
areas identified by the Department of Education. 
(b) For the purposes of this Act, “covered students” shall mean all 
recipients of government educational assistance as enumerated in Section 
4 of Republic Act 6728 as amended. 
Section 4. Length of Service. - Covered students shall render teaching 
service equivalent to one-half (1/2) of the total years of their actual employment 
in post-secondary programs. 
Section 5. Assignments. - 
(a) The Secretary of Education shall determine areas where covered 
students shall be deployed. The determination shall include the actual 
number of teachers needed and the subject-competencies required. The 
Secretary of Education may establish other parameters for such 
determination. 
1 


(b) The Secretary of Education shall furnish the Student Loan Fund 
Authority of the determined areas. The Student Loan Fund Authority shall 
then assign covered students to determined areas, taking into 
consideration the student's health, the physical location of the area, and 
such other considerations. 
(c) Upon assignment, covered students shall be (1) under the 
administrative 
Section 6. Student Loan Fund Authority. - In addition to its existing 
.powers and-duties under Republic Acts no. 6014 and 6728 as amended, the 
Student Loan Fund Authority shall have the following powers and duties: 
(a) Draw up a contract with the student-debtor as. a requisite before he or 
she can access funds from the Students' Loan Fund. The contract 
shall include a service clause obliging the student-debtor to render 
service as a form of loan payment. 
(b) Order the issuance of the student's final clearance to the College 
Registrar concerned upon compliance of the student with the 
provisions of this Act. 
Section 7. Compliance. - Covered students shall be required to comply 
with the provisions of this Act before the issuance of his or her transcript of 
records. The Regional Offices of the Department of Education shall monitor 
compliance of covered students within their jurisdiction. 
The concerned Regional Director of the Department of Education shall 
certify to the Student Loan Fund Authority that covered students have complied 
with the provisions of this Act. 
Section 8. Compensation. - Covered students shall receive salaries, 
benefits, emoluments, and other compensation pursuant to existing laws. 
Section 9. Appropriations. - The initial sum of Five Hundred Million 
Pesos (PHP500,000,000) shall be allocated to implement the provisions of this 
Act, to be charged equally against current appropriations for the President's 
Social Fund, and the total gross earnings of the Philippine Amusements and 
Gaming Corporation (PAGCOR). If the amount shall not be enough, the 
remaining balance shall be charged against unappropriated earnings from the 
implementation of Section 4 of Republic Act 9337, further amending the National 
Internal Revenue Code of 1997 as amended. 
Subsequent appropriations necessary to carry out this Act shall be 
charged against the following sources: 
(a) Twenty per centum (20%) of revenues earned from the proceeds of 
lease, privatization, and/ or disposal of assets and/or sequestered by 
the National Government and government-owned and controlled 
corporations, including shares of stocks of corporations where the 
Government owns interests; 
(b) Twenty-five per centurn (25%) of revenues earned from the collection 
under Section 4 of Republic Act 9337, further amending the National 
Internal Revenue Code of 1997 as amended; and 
2 


(c) Twenty-five per centum (25%) to be charged against the current 
appropriations for the President's Social Fund. 
(d) Thirty per centum (30%) of total gross earnings of the Philippine 
Amusements and Gaming Corporation (PAGCOR). 
Section 10. Separability Clause. - if any provision of this Act is declared 
unconstitutional, the same shall not affect the validity and effectivity of the other 
provisions not affected thereby. 
Section 11. Repealing Clause. - Section lO(c) of Republic Act 6728 as 
amended js hereby modified. All laws, decrees, rules and regulations, and other 
issuances inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
Section 12. Effectivity. - This Act shall take effect immediately upon 
publication: Provided, That service clause provisions shall be included in 
educational loan applications and enrolment forms of covered students in the 
academic year following the effectivity of this Act. 
Approved, 
3