FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
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) 
I· '. 
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Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
10 JI. 12 jill 5' 
Every year, thousands of Filipino children troop to the schools, but only a 
handful of them get to actually complete their education. According to studies, 
out of 100 schoolchildren who enter Grade 1, only 65 are able to reach Grade VI. 
Out of this number, only 43 will manage to finish the four years in high school. 
From the 43, only 2 will be able t6 enter college. 
Similarly, we notice a downward trend in the enrollment rate. Although 
enrollment in Philippine schools grew at an average of 1.98 % yearly from 1995 
to 2002, it declined at an average rate of 1 % yearly from 2003 to 2008. 
In addition, enrollment rate in private schools is down to 60% for school 
year 2008-2009, as compared to 85% last school year, mainly for financial 
reasons. The yearly increases in tuition by private schools had compelled many 
families to enroll their children in public schools, which result to overcrowding and 
shortage of school facilities. 
' 
To address this, the Expanded Government Assistance to Students and 
Teachers in Private Education (GASTPE) was passed, allowing lower-income 
families to enroll their children in private schools. Through GASTPE, a voucher 
system of tuition fee payment was introduced. 
Since its implementation; the program has benefitted more than half a 
million student-grantees. 
However, there is a need to improve the system to 
make it more responsive and attuned to the needs of the students and the 
schools. 
In particular, it is imperative to increase the financial assistance 
extended to students in both the secondary and tertiary levels. 
This amendatory bill, aims to do just that. 
It is for this reason that the 
approval of the same is earnestly sought. 
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FIFTEENTH CONGRESS OF TI-JE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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) 
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'SENATE 
Senate Bill No. 1224 
Introduced by Senator Manny Villar 
AN ACT 
10 Jl 12 1'15' 
AMENDING REPUBLIC ACT NO. 8545, OTHERWISE KNOWN AS THE 
"EXPANDED GOVERNMENT ASSISTANCE TO STUDENTS AND TEACHERS 
IN PRIVATE EDUCATION ACT" PROVIDING FOR AN EXPANDED VOUCHER 
OR COUPON SYSTEM IN SECONDARY AND TERTIARY EDUCATION, AND 
APPROPRIATING FUNDS THEREFOR. 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Republic Act 8545, otherwise known as the "Expanded 
Government Assistance to Students and Teacher in Private Education Act," is 
hereby amended to read as follows: 
Sec. 2. Section 3 is hereby amended to read as follows: 
"Criteria 
for 
Assistance. 
The 
programs 
for 
assistance 
to 
STUDENTS shall be based on a set of criteria which shall include among 
others, tuition fees charged by the schools, socio-economic needs of each 
region giving priority to the 5th AND 6th CLASS MUNICIPALITIES, overall 
performance of the PRIVATE schools, the academic qualifications and the 
financial STATUS of the PRIVATE schools, as well as the RATIO OF 
PUBLIC SCHOOLS VIS A VIS PRIVATE SCHOOLS and size of student 
population IN THE PUBLIC SCHOOLS IN THE AREA." 
"In addition to the forgoing criteria, within such reasonable time as 
the State Assistance Council may determine, student grantees shall be 
enrolled in schools which have accredited programs or are applying for 
accreditation as may be recognized by the respective State Assistance 
Council." 
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"Preference shall be given to students whose annual income is 
BELOW 
THE 
POVERTY 
THRESHOLD 
INCOME 
AS 
MAYBE 
DETERMINED BY THE APPROPRIATE GOVERNMENT AGENCY." 
THE 
STATE ASSISTANCE COUNCIL MAY ADJUST THE 
ANNUAL FAMILY INCOME QUALIFICATION DEPENDING ON THE 
CHANGES IN THE ECONOMIC CIRCUMSTANCES AND CONDITIONS 
OF THE COUNTRY TO ACCOMMODATE MORE BENEFICIARIES. 
"The programs of assistance under this Act shall be extended only 
to students who are citizer]s of the Philippines." 
Sec. 3. Section 4 is hereby amended to read as follows: 
"Forms of Assistance- Assistance to private education shall consist 
of assistance to students and teachers." 
(1) Tuition fee Supplements for students in private high schools including 
vocational and technical courses; 
(2) TRANSPORTATION ANDIOR BOOK ALLOWANCES for Secondary 
and college students; 
(3) EXPANSION OF THE voucher system of the Philippines Education 
Student Financial assistance Program ( PESFA) 
(4)Expansion of the existing Educational Service Contracting Scheme; . 
(5) Scholarship grants to students graduating as valedictorians and 
salutatorians from Secondary schools; 
(6) Tuition fee supplements to students in private colleges and 
universities; 
(7) Education Loan fund 
"The following are forms of assistance to teachers and faculty in private 
education: 
(1) In-service training fund for teachers in private high schools 
(2) College Faculty Development Fund" 
Sec. 4. FOR PURPOSES OF THIS ACT, THE TUITION FEE CEILING 
FOR PARTICIPATING PRIVATE SCHOOLS IN THE EDUCATION SERVICE 
CONTRACTING SCHEME AND TUITION FEE SUPPLEMENTS FOR HIGH 
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SCHOOL STUDENTS AND PRIVATE EDUCATION STUDENT FINANCIAL 
ASSISTANCE FOR COLLEGE STUDENTS IS SET AT SIX THOUSAND PESOS 
(P6,000) PER SEMESTER. THE TUITION FEE CEILING MAY SERVE AS A 
BASIS OF SELECTING I ACCREDITING SCHOOLS THAT WOULD LIKE TO 
PARTICIPATE IN THE PROGRAMS UNDER GASTPE. 
THE STATE ASSISTANCE COUNCIL SHALL REVIEW THE TUITION 
FEE CEILING ONCE EVERY TWO YEARS AND MAKE THE ADJUSTMENT AS 
DEEMED NECESSARY. 
"The State Assistance Council shall have the discretion to allow the 
schools which charge higher tuition fee than the tuition fee ceiling to participate in 
the programs under GASTPE." 
Sec. 5. Section 5 of RA 8545 is hereby amended to read as follows: 
Tuition Fee Supplements in Private High Schools. 
(1) Financial Assistance for tuition for students in private high 
schools shall· be provided by the government through a 
voucher system in the following manner: 
(a) For students enrolled in schools charging NOT 
MORE THAN SIX THOUSAND PESOS PER 
SEMESTER IN TUITION AND OTHER FEES, the 
government shall provide them with voucher in 
such an amount as may be determined by the 
council. Provided, That the government shall 
reimburse 
the 
vouchers 
from 
the 
schools 
concerned within one hundred twenty (120) days 
from 
the 
close 
of the 
registration 
period. 
PROVIDED FURTHER THAT THE AMOUNT OF 
TUITION FEE SUPPLEMENT SHALL BE AT 
LEAST 20% OF THE PER CAPITA COST IN 
PUBLIC HIGH SCHOOLS. 
(b) THE STATE ASSISTANCE COUNCIL MAY IN 
SUBSEQUENT 
YEARS 
INCREASE 
THE 
AMOUNT OF 
FINANCIAL ASSITANCE FOR 
STUDENTS 
UNDER 
THE 
TUITION 
FEE 
SUPPLEMENT SUBJECT TO THE AVAILABILITY 
OF FUNDS. 
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(2) Assistance urider Paragraph (1), subparagraph (a) shall be 
guaranteed to all private high schools participating in the 
program for a number of slots as of the effectivity of this Act as 
the total number of students who availed of tuition fee 
supplements for SCHOOL YEAR 2000-2001. Provided That 
the State Assistance Council may in subsequent years 
determine additional slots and/or additional participating high 
schools as may be deemed necessary. 
Sec. 6. Section 6 is hereby amended as follows: 
HIGH SCHOOL TEXTBOOK ASSISTANCE FUND FOR SCHOOLS 
CHARGING NOT MORE THAN SIX THOUSAND PESOS PER SEMESTER, 
THE GOVERNMENT SHALL ~ROVIDE THE STUDENT WITH TEXTBOOK 
ALLOWANCE WHICH IS EQUIVALENT TO AT LEAST ONE THOUSAND 
PESOS (P1,000) A YEAR OR THE ANNUAL PER CAPITA TEXTBOOK 
ALLOCATION PER STUDENT FOR ACADEMIC SUBJECTS IN PUBLIC 
SCHOOLS, WHICHEVER IS HIGHER. PROVIDED THAT THE TEXTBOOK 
ALLOWANCE MAY BE GIVEN TO BENEFICIARIES OF TUITION FEE 
SUPPLEMENTS AND/OR EDUCATION SERVICE CONTRACTING SCHEME 
FOR THE HIGH SCHOOL STUDENTS AND PRIVATE EDUCATION STUDENT 
FINANCIAL ASSISTANCE FOR COLLEGE STUDENTS. 
Sec. 7. Section 7 is hereby amended as follows: 
EDUCATIONAL SERVICE CONTRACTING SCHEME-
(a) THE DEPARTMENT OF EDUCATION, CULTURE AND 
SPORTS SHALL CONTINUE TO ENTER INTO CONTRACTS 
WITH PRIVATE SCHOOLS WHEREBY THE GOVERNMENT 
SHALL PROVIDE DIRECT FINANCIAL ASSISTANCE TO 
THE STUDENTS WHO WANT TO ENROLL IN PRIVATE 
SCHOOLS 
BUT 
DO 
NOT 
HAVE 
THE 
FINANCIAL 
CAPABILITY TO AFFORD THE TUITION FEE IN THESE 
SCHOOLS. 
(b) The Department shall also enter into contracts with private 
schools ACCREDITED 
BY THE 
DECS 
particularly in 
communities where THE PUBLIC SCHOOLS CANNOT 
ACCOMMODATE 
THE 
STUDENTS 
DUE 
TO 
THE 
INCREASING STUDENT POPULATION, in which case the 
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Department 
shall 
PROVIDE 
FINANCIAL 
ASSISTANCE 
WHICH MAY COVER THE TUITION AND OTHER FEES OF 
STUDENTS WHO SHALL ENROLL-IN SAID PRIVATE 
SCHOOLS. 
(c) FOR STUDENTS ENROLLED IN SCHOOLS CHARGING 
NOT 
MORE 
THAN 
SIX 
THOUSAND 
PESOS 
PER 
SEMESTER IN TUITION AND OTHER FEES, the amount of 
assistance to be given by the government shall be EQUAL to 
the per student cost in public high schools. 
(d)The Departmeint shall fully pay the subsidized amount to 
participating schools not later than one hundred eighty (180) 
days from the dose of the registration period. 
(e)The amount of assistance shall be allocated and distributed 
among the 16 regions in proportion to the total population as 
well as the high school age population for the first school year; 
(f) The amount of assistance to private high schools participating 
in the program shall be guaranteed for a number of slots as of 
the effectivity of this Act as the number of stUdents availing of 
educational service contracting for SCHOOL YEAR 2000-
2001: Provided that the State Assistance Council may in 
subsequent years determine additional slots and/or additional 
participating 'private high schools as may be deemed 
necessary." 
(g) IN CASES WHERE THE AMOUNT OF THE TUITION FEES 
AND OTHER FEES OF THE SCHOOL EXCEEDS THE 
AMOUNT OF SUBSIDY PRESCRIBED BY THE STUDENT 
ASSISTANCE COUNCIL, THE PRIVATE SCHOOL MAY 
SHOULDER 
THE 
CORRESPONDING 
BALANCE 
AS 
COUNTERPART FUNDING. 
(h)THE 
STATE 
ASSISTANCE 
COUNCIL 
MAY 
IN 
SUBSEQUENT YEARS INCREASE THE AMOUNT OF 
FINANCIAL ASSISTANCE FOR STUDENTS UNDER THE 
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ESC PROGRAM SUBJECT TO THE AVAILABILITY OF 
FUNDS. 
Sec. 8. ASSISTANCE TO COLLEGE FRESHMEN-
Subparagraph (a) of Section 8 of RA 8545 is hereby amended as follows: 
THE VOUCHER SYSTEM OF PRIVATE EDUCATION STUDENT 
FINANCLAL ASSISTANCE (PESFA) PROGRAM. THE GOVERNMENT 
SHALL UNDERTAKE AN ANNUAL 10% INCREASE IN THE AMOUNT 
OF 
ASSISTANCE 
PROVIDED 
UNDER THE 
PESFA 
PROGRAM 
COVERING 
THE 
TUITION 
FEE, 
BOOK ALLOWANCE 
AND/OR 
TRANSPORTATION ALLOWANCE AND STIPEND SO AS TO HELP THE 
STUDENTS COPE WITH THE INCREASING COST OF EDUCATION, 
SUBJECT TO THE AVAILABILITY OF FUNDS. PROVIDED THAT THE 
TUITION FEE CEILING FOR SCHOOLS IS SIX THOUSAND PESOS 
(P6,OOO) 
PER 
SEMESTER. 
PROVIDED 
FURTHER THAT SUCH 
FINANCIAL ASSISTANCE SHALL BE GRANTED TO DESERVING AND 
UNDERPRIVILEGED STUDENTS WHO SHALL BE SELECTED ON THE 
BASIS OF FAMILY INCOME, GEOGRAPHIC SPREAD AND RESULTS 
OF COMPETITIVE EXAMINATIONS GIVEN BY CHED FOR DEGREE 
COURSES PROVIDED FINALLY, THAT THE CHED SHALL DIRECTLY 
PAY THE AMOUNT COVERING THE TUITION FEE EXPENSES TO THE 
PARTICIPATING SCHOOLS. HOWEVER,THE STIPEND OF EACH 
STUDENT BENEFICIARY SHALL BE CLAIMED IN THE NEAREST 
CHED OR TESDA REGIONAL OFFICE. 
THE CHED SHALL REVIEW AND EVALUATE THE PRESENT 
COURSES OF STUDENTS WHICH ARE CONSIDERED PRIORITY IN 
THE GRANTING OF FINANCIAL ASSISTANCE TO MAKE THE LIST OF 
COURSES MORE RELEYANT TO THE NEEDS OF THE COUNTRY. 
FOR PURPOSES OF THIS ACT, AN 
UNDERPRIVILEGED 
STUDENT SHALL REFE,R TO A STUDENT WHOSE GROSS INCOME, 
IN ANY AND THAT OF THE COMBINED ANNUAL GROSS INCOME OF 
HIS/HER PARENTS IS BELOW THE POVERTY THRESHOLD INCOME. 
Sec. 9. The following provision shall be inserted as part of RA 8545. 
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SCHOLARSHP FUND IN PRIVATE HIGH SCHOOLS, COLLEGES AND 
UNIVERSITIES.- THE PARTICIPATING PRIVATE SCHOOLS IN THE GASTPE 
PROGRAM 
MAY 
INSTITUTIONALIZE 
COUNTERPART 
FUNDING 
TO 
FINANCE THE EDUCATION SERVICE CONTRACTING SCHEME, TEXTBOOK 
ASSISTANCE PROGRAM AND THE PRIVATE EDUCATION STUDENT 
FINANCIAL, ASSISTANCE PROGRAM. THE PRIVATE SCHOOLS ARE 
HEREBY ENJOINED TO PROVIDE A COUNTERPART OF AT LEAST 20% OF 
THE BENEFICIARIES. 
THE PRIVATE SCHOOLS WHICH ARE NOT PARTICIPATING IN 
THE PROGRAM MAY ALSO ALLOCATE A PORTION OF THEIR GROSS 
INCOME TO SCHOLARSHIP AND FINANCLAL ASSISTANCE FOR POOR BUT 
DESERVING STUDENTS. 
Sec. 10. The following provision shall be inserted as part of RA 8545. 
CONDITIONS FOR TUITION FEE SUBSIDY. - ASSISTANCE PROVIDED 
IN THE PRECEDING SECTIONTIONS SHALL BE GRANTED ON THE 
CONDITION 
THAT 
SEVENTY 
PERCENT 
(70%) 
OF 
THE 
AMOUNT 
SUBSIDIZED SHALL GO TO THE PAYMENT OF SALARIES,WAGES, 
ALLOWANCES AND OTHER' ADMINISTRATORS WHO ARE PRINCIPAL 
STOCKHOLDERS OF THE SCHOOL, AND MAY BE USED TO COVER 
INCREASES AS PROVIDED FOR IN THE COLLECTIVE BARGAINING 
AGREEMENTS EXISTING OR IN FORCE UPON THE EFFECTIVITY OF THIS 
ACT. PROVIDED THAT AT LEAST 20% SHALL GO TO THE IMPROVEMENT 
OR 
MODERNIZATION 
OF 
BUILDINGS, 
EQUIPMENT, 
LIBRARIES, 
LABORATORIES, GYMNASIA AND SIMILAR FACILITIES AND TO THE 
PAYMENT OF OTHER COSTS 
OF OPERATION. FOR THIS PURPOSE, THE SCHOOL SHALL MAINTAIN A 
SEPARATE RECORD OF ACCOUNTS FOR ALL ASSISTANCE RECEIVED 
FROM THE GOVERNMENT,' ANY TUITION FEE INCREASE AND THE 
DETAILED DISPOSITION AND USE THEREOF. WHICH RECORD SHALL BE 
MADE AVAILABLE FOR PERIODIC INSPECTION AS MAY BE DETERMINED 
BY THE STATE ASSISTANCE COUNCIL. 
Sec. 11. 
The following provision shall be inserted as part of RA 
8545. 
APPROPRIATIONS 
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THE DEPARTMENT OF EDUCATION MAY UTILIZE ITS SAVINGS 
FROM ANY ITEM OF APPROPRIATION IN FISCAL YEAR 2001. PROVIDED 
THAT ANY DEFICIENCY SHALL BE TAKEN FROM ANY OR ALL OF THE 
FOLLOWING SOURCES: 
(1)TWENTY PERCENT (20%) OF THE TRAVEL TAX AND 
AIRPORT DEPARTURE TAX COLLECTIONS; 
(2) TEN PERCENT (10%) OF ANY FUNDS COLLECTED BY 
THE SUGAR REGULATORY ADMINISTRATION OF THE 
PHILIPPINES COCONUT AUTHORITY 
(3)TEN PERCENT ( 10%) OF THE NET INCOME OF THE 
DEVELOPMENT ACADEMY OF THE PHILIPPINES 
(4)PORTIONS OF THE OVERSEAS WELFARE FUND TO 
BENEFIT 
THE 
DEPENDENTS 
OR 
CHILDREN 
OF 
OVERSEAS WORKERS; 
(5)ANY 
OTHER 
LUMP 
SUM 
APPROPRIATIONS 
OR 
COLLECTIONS 
UNDER 
THE 
SUPERVISION 
AND 
CONTROL OF THE OFFICE OF THE PRESIDENT. 
PROVIDED, FINALLY THAT THE TOTAL AMOUNT MADE AVAILABLE TO 
CARRY OUT THE PURPOSES OF THIS ACT SHALL NOT EXCEED ONE 
BILLION PESOS (PI,OOO,OOO,OOO,) FOR FISCAL YEAR 2001. THEREAFTER, 
SUCH 
AMOUNT AS 
MAY BE 
NECESSARY FOR 
ITS 
CONTINUED 
IMPLEMENTATION SHALL BE INCLUDED IN THE ANNUAL GENERAL 
APPROPRIATIONS ACT. 
Sec. 12. Penalties. In case of any violation of the provisions of this Act or 
the rules and regulations promulgated pursuant thereto by an institution, the 
Department of Education (DepEp) or the Commission on Higher Education, upon 
the recommendation of the State Assistance Council, may bar the institution from 
participating in or benefiting from the programs of this Act, and from other 
programs of the DepED and thE1 CHED, without prejudice to administrative and 
criminal charges as may be filed against the school and or its responsible officers 
under existing laws. 
Sec. 13. The Senate Committee on Education and House Committee on 
Basic Education shall oversee the implementation of the Expanded Voucher 
System in coordination with the State Assistance Council. The State Assistance 
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Council shall submit to Congress an annual accomplishment report on the 
implementation of this Act. 
Sec. 14. The State Assistance Council led by the Department of 
Education, Commission on Higher Education and Technical Education and Skills 
Development Authority shall formulate rules and regulations necessary for the 
smooth implementation of this ACt within a period of sixty (60) days from the day 
of its effectivity. 
Sec. 15. Repealing Clause. All laws and decrees and such letters of 
instruction, rules and regulations, or parts thereof which are inconsistent with this 
Act are hereby repealed or modified accordingly. 
Sec. 16 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. 
Sec. 17. Effectivity Clause. This Act shall take effect immediately upon 
its publication in at least two newspaper of general circulation. 
Approved, 
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