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

SIXTEENTH CONGRESS
FIRST REGULAR SESSION

House Bittno, 8019

INTEGRATED STUDENTS’ ASSISTANCE LAW

Introduced by Representative Isagani S. Amatong.

EXPLANATORY NOTE
The role of higher education in nation-building cannot be over emphasized.

‘Nthough the government has already taken various steps in improving the country's high
unemployment and underemployment rates, there remains a compelling need for broader
socialized access to higher education for appropriate competency and knowledge in the

nation’s under utilized workforce.

Section 14 of Article Il of the 1987 Constitution mandates and thus provides: “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.” However, the current student loan law (RA 8545,
otherwise known as Government Assistance to Students and Teachers in Private Education
‘Act) limits its scope to fresh graduates and students below thirty years of age in private

education institutions.


There is therefore a dire need for a comprehensive but simplified mechanism and structure
as well as adequate funding for a loan program under the Commission on Higher Education,

through the enactment of "Integrated Students’ Assistance" (ISA) law.
The proposed ISA law intends to provide, among others, the following features:

* Increase the amount of tuition fee loan;

‘* Broaden the scope of its coverage for the needy and the qualified
applicants

* Provide COLA loan (Cost of Living Allowance Loan) which will cover
adequately room and board, books and supplies and other
incidental/essential expenses

© Create a separate Integrated Students’ Assistance Office under the CHED;
and

© Design an effective payment scheme by means of withholding from
salary upon employment or voluntary payment for the self-employed and

even for the momentarily unemployed

And pursuant thereto, complement the program with a placement scheme/assistance for
employment for the successful grantees of the program under the Integrated Students’
Assistance Office (ISAO).

The State, being the ultimate parens patriae goes beyond its usual effort and reaches out to
the masses of our people to enhance from within “inclusive growth” consistent with the
national drive for more progressive self-reliant communities, in particular, equitable and just

society in general.

The ISA law seeks to level the playing field for those who have not been privileged to enjoy
sound formative training at home and in the basic elementary and secondary schools

In, thus opening doors to the greater number of citizens who

preparatory to tertiary educat

provide stronger and wider base for a Filipino nation.


The same loan program may, however be limited to courses deemed relevant as based on

domestic and global needs as may be jointly determined by the Departments of Labor and
Employment, and the Trade and Industry.

In view of the foregoing, the approval of this bill is earnestly sought.

‘ seta Belge Lb

Representative

3" District, Zamboanga del Norte


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

‘SIXTEENTH CONGRESS
FIRST REGULAR SESSION

3019

HOUSE BILL NO.

INTEGRATED STUDENTS’ ASSISTANCE LAW

Introduced by Representative Isagani S. Amatong

AN ACT ESTABLISHING AN INTEGRATED STUDENTS’ ASSISTANCE PROGRAM, GRANTING
TUITION FEE, COST OF LIVING ALLOWANCE AND MISCELLANEOUS LOANS TO QUALIFIED.
COLLEGE STUDENTS AND APPROPRIATING FUNDS THEREFOR

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 "Integrated Students’ Assistance Act
of 2013"

SECTION 2. Declaration of Policy.- It is the policy of the State to give priority to education.
Article 14 Section 1 of the 1987 Constitution provides that “The State shall protect the right
of citizens to quality education at all levels and shall take appropriate steps to make such
education accessible to all”. Progressively increasing amounts have been allocated to the
Department of Education for Primary and Secondary Education, yet what have been allotted
to tertiary education has not increased proportionately. Consequently, the cost borne by
students moving to tertiary level both in government and private institutions has gone up,

to the exclusion and deprivation of those economically less able to share with the increasing


cost of higher education. The state priority for education must therefore be complemented

with a program of assistance to those in need to make such priority real and equitable.
SECTION 3. Objectives
This Act intends to:

© Make tertiary education more accessible to more individuals thru the loan program

* Increase the amount appropriated for the loan program

‘* Create a more equitable form of student assistance program

© Create a post graduate assistance mechanism

© Puta proper and effective collection scheme through the process of withholding of
loan payments upon employment, voluntary payment or through other reasonable
means

* Include cost of living allowance loans, miscellaneous loans

* Create the Integrated Students’ Assistance Office (ISAO) under the CHED

* Organize a separate loan collection unit within the ISAO
SECTION 4, Coverage

This Act shall cover Filipino citizens who have graduated from high school, college drop outs,
not more than fifty years old, and have met the qualifications set by the Commission on
Higher Education. Students who are currently enrolled in college but find it difficult to
continue by reason of financial inadequacy are also qualified to apply for student loan. The
student applicant may apply for a particular type of loan or to all types depending on the

qualifications set by CHED.
SECTIONS. _ Definition of integrated Students’ Assistance Program
The Integrated Students’ Assistance Program shall offer three types of loan;
1. Tuition Fee Loan

2. Cost of Living Allowance Loan

3. Miscellaneous Loans.


This simply means that the Government shall support tertiary students by helping and

aiding them to finish their college education.
Tuition Fee Loan

Tuition Fee Loan shall cover the total cost of tuition for the whole semester or whole course.
Preference shall be given to students belonging to families with income below Php 100,000

per annum.
Cost of Living Allowance Loan

Cost of Living Allowance Loan shall cover the dorm cost, food allowance, transportation
cost, uniform cost, personal hygiene based on the standard amount set per region by the

CHED. It can be applied on a per semester basis or upon the coverage of the whole course.
Miscellaneous Loan

Miscellaneous Loan shall cover school supplies, books, cost of school related activities. The
limit for the said loans are adjustable based on inflation rate and reasonable changes in cost

of living.

The tuition fee loan refers to the expenses payable to the accredited schools. The Cost of
Living Allowance Loan refers to the yearly cost of living as recommended by CHED Regional
Office, renewable on a yearly basis. While Miscellaneous loans cover other school related

costs such as books, school supplies, internet rental and other related expenses.

SECTION6. Creation of Integrated Students’ Assistance Office. An Integrated Students’
Assistance Office under the CHED is hereby created to oversee loan collection and

implementation of said program.
SECTION 7. —Availment Process

The loan privilege under this Act shall be claimed at the time of application in any accredited
school by presenting a copy of the Income Tax Return (ITR) of the parents or the student
applicant, or Certificate of Indigency from the Barangay or Department of Social Welfare

and Development.


It shall be the accredited school which shall forward the said requirement to the Integrated
Students Assistance Office of the Commission on Higher Education. Upon approval, the
student-debtor shall sign a notarized Deed of Undertaking in favor of the government to pay
the education loan on time and failure to pay on time shall mean additional interest based

on the legal rate.
SECTION 8. Payment Scheme

The student debtor shall start paying the student loan upon employment or one year after
graduation whichever coms first. The student debtor may choose between two payment
schemes: five years (5) to pay with four percent (4%) interest per annum or ten (10) years

to pay with six percent (6%) interest per annum.
SECTION 9. Collection Process or Voluntary Payment Process

It shall be the employer's obligation to withhold the payment on behalf of the government

and remit such payment on a monthly basis to the Office of Student Services of CHED.

The student may opt to pay voluntarily by depositing the payment on a monthly basis to the

bank account of the Integrated Students’ Assistance Office.
SECTION 10. Misrepresentation

‘Any student who is found to have committed misrepresentation to avail of the loan privilege
shall be taken out of the list of loan recipients without prejudice to the imposition at the
instance of the school of appropriate disciplinary sanctions including suspension or

expulsion from said school, at the discretion of CHED.
SECTION 11. Failure to Pay On Time

Any student who fails to pay on time shall be given thirty (30) days grace period to resume
payment without additional interest. Upon the lapse of thirty days, an interest of one

percent (1%) of the total amount due for the unpaid month shall be imposed.

The additional amount payable due to interest shall not exceed the total amount loaned by

the student —debtor. If such threshold is reached, the ISA office shall send a demand letter


to the student-debtor and notify the school. Full payment shall be demanded at this point,
and failure to pay shall merit a court action by the ISA office for collection of sum of money

in favor of the government.
SECTION 12, Release of Government Obligation

A Certificate of Full Payment shall be issued by the ISAO upon full payment by the student-
debtor. Such Certificate shall be submitted to the school of the debtor, and with such
certification, the school shall annotate to the Official Transcript of Records of the debtor the

word “LOAN PAID”.
SECTION 13. Loan Forgiveness Clause

Student loan contracted under this Act is automatically extinguished upon the death or

permanent disability of the student-debtor.

Any student who has maintained a General Weighted Average of 88% and above at the time
of graduation with no failing grade is no longer liable to pay the standard interests, except

when delays for monthly payments have been incurred.
SECTION 14. Responsibility of the School

The school who accepts students under ISA is obliged to provide the CHED with a per
semester-based status report of the students under the program with respect to their
tuition fee coverage, grades, and a certificate of current enrollment or drop out status for
the semester. The school shall also submit liquidation of expenses for students who have

been granted the Cost of Living Allowance (COLA) loan and Miscellaneous Loan.

Upon the approval of COLA loan, it is only ministerial on the part of the school to release the
funds to the student-debtor with no additional requirement to be imposed. Any violation of

this shall be punishable under this act.

The school is also obliged to release all the pertinent school documents of the student-
debtor upon graduation. The school shall annotate in the Official Transcript of Records of

the graduate the ISA loan identification number in all pages and a copy of Deed of


Undertaking for Loan Payment in favor of ISA-CHED, as notification for future employers to

withhold loan obligation upon employment.
SECTION 15. Joint and Several Liability of the School and Student-Debtor

Any school who has declared that a student-debtor is currently enrolled but has already
been separated from the school shall be made jointly and severally liable to the government

for the amount loaned to the student-debtor.
SECTION 16. Disqualification

A student debtor must enroll the full load of subject required per semester. Students who
have not enrolled for a semester are also deemed automatically disqualified but may

reapply.
SECTION 17. Post Graduation Assistance of ISAO

ISAO shall assist the successful graduates in career placement particularly in the

Government Service.
SECTION 18. Travel Abroad
Travel Abroad

The ISAO shall forward to the Department of Foreign Affairs the names of debtors with
outstanding loans on a semi-annual basis. Any student debtor who intends to leave the
country with no return ticket indicating his return in less than six (6) months is required to

secure a travel clearance from the ISAO.
SECTION 19. Complaints, Violations and Fines

In case of violations of the provisions of this Act or the rules and regulations, promulgated
pursuant hereto by an institution and CHED, may bar the institution or individual from
participating in or benefiting from the programs of this Act, and from the other programs of
CHED, without prejudice to administrative and criminal charges as may be filed against the
individuals responsible such as but not limited to the president of the school, or student

affairs officer.


SECTION 20. Release from Loan Obligation

Upon the completion of payment, the student-debtor shall be released from his loan
obligation and shall be issued with Certificate of Full Payment by ISAO. A copy of the
Certificate of Full Payment shall also be forwarded to the student-debtor's school and upon
receipt thereof, shall stamp the word “paid” to the master copy of the student-debtor’s

Official Transcript of Records.
SECTION 20 Appropriations

The amount needed to implement this program shall be provided for in the annual General
Appropriations Act taken from the more than 2 billion pesos additional appropriation to

CHED for 2014.
SECTION 21. Repealing Clause

All laws and decrees, letters of instructions, rules and regulations particularly Sections 3, 10,
11, 16 of RA 8545 and CHED Memorandum Order No. 56 Series 2012 which are

inconsistent with this Act are hereby repealed or modified accordingly.