EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
SENATE
2135
S. B. NO.
Othsc of
■21 APR 15 P3S6
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
ESTABLISHING THE STUDY NOW, PAY LATER PROGRAM, 
APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES
EXPLANATORY NOTE
While the Philippine government has aiways recognized the roie of education 
in development and prioritized its funding, countless barriers to access to quality 
education still remain. 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.11n addition, 1 out of every 10 
Filipinos aged 6 to 24 years old is out-of-school.2 This is equivalent to over 3.5 million 
Filipinos who are not captured in any of our basic, higher, and tech-voc institutions.
Unfortunately, the COVID-19 pandemic has only exacerbated the obstacles to 
pursuing education. According to the Department of Education (DepEd), 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.3 Moreover, thousands of private 
school learners—specifically, 148,852 elementary students, 69,851 junior high school 
students, 26,138 senior high school students, and 5,698 learners with disabilities— 
were estimated to have transferred to public schools for AY 2020 - 2021.4
In this light, this measure proposes to institutionalize a Study Now, Pay Later 
program for students in public and private educational institutions to ensure that their 
education is not unnecessarily suspended or terminated due to lack of financial 
resources. Under this bill, parents and students can directly access loans from the
1 https://cnnphilipplnes.comrt)uslness/2018/11/15/multidimensional-poverty-lndex-mpi-education-psa.html 
Jhttps://psa.gov.ph/content/nine-percent-filipinos-aged-6-24-years-are-out-school-results-2017-annual-poverty- 
indicators#;-:text=Based%20on%20the%202017%20Annual1children%20and%20youth%20(OSCY).
3 https://www.pna.gov.ph/articles/1109587
4 https://www.rappler.com/nation/students-private-schools-transfer-to-publio-coronavirus-pandemic


Development Bank of the Philippines (DBP), while schools can discount from the same 
financial institution the promissory notes of students and parents with pending loans.
As the pandemic continues to limit the operations and mobility of our business 
and labor sectors, not to mention its impact on soaring prices of commodities, 
thousands of families are at risk of withdrawing their children from school if appropriate 
government support is not rolled out immediately.
Last year. Department of Finance (DOF) Secretary Carlos G. Dominguez 
announced that the government was eyeing apportioning at least Php 1 billion for a 
‘study now, pay later’ plan to prevent students from dropping out and to help schools 
to stay afloat amidst the pandemic. This led to the launching of various student loan 
programs of Landbank such as the i-STUDY loan program for students and parents, 
and the ACADEME lending program for educational institutions.
The State has always recognized the complementary roles of public and private 
educational institutions. The fact is our public education institutions are under­
resourced and overburdened, and that maintaining the viability of private education 
helps promote and protect the right of all citizens to quality education at all levels.
It is the hope of this measure to institutionalize the offering of an accessible and 
affordable loan program o that more Filipinos will be able to complete their education 
and gain access to economic opportunities despite financial difficulties. This is a long­
term investment strategy that the government can undertake—the best time for which 
is now—to reduce inequality and promote inclusivity in education.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
SENATOR JOEL VILLANUEVA


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
SENATE
S. B. NO. 2135
Ct i .
l\PH 15 P3S6
ni'Cri.':
Introduced by SENATOR JOEL VILLANUEVA
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 Phiiippines in 
Congress assembled:
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SECTION 1. Short Title. - This Act shall be known as the “Study Now, Pay Later Act.”
SEC. 2. Declaration of Poiicy. - 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.
SEC. 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 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.


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SEC. 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.
SEC. 5. Interest Rate Subsidy. - The SNPL shall provide loan interest rate subsidy 
to all students who avail of the loan under the SNPL.
SEC. 6. Repayment Terms. - The student loans extended under the SNPL shall be 
payable within a reasonable period, but it 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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,