Declaration of Policy
- Ensures quality education accessibility for all Filipinos.
- Recognizes complementary roles of public and private educational institutions.
- Affirms government's priority in providing basic, post-secondary vocational/technical, and higher education.
- Defines elementary, secondary, and post-secondary education.
Criteria for Assistance
- Assistance based on tuition fees, socioeconomic needs, school performance, academic qualifications, financial needs, geographic spread, and student population.
- Gives priority to Social Reform Agenda (SRA) provinces.
- Requires student grantees to enroll in accredited or accrediting private schools.
- Preference to students with family income not exceeding P72,000 or council-determined amount.
- Extends assistance to community colleges.
- Assistance only for Filipino citizens.
- State Assistance Council to evaluate quality of courses and recipient institutions.
Forms of Assistance
- To Students:
- Tuition fee supplements for private high school and college students.
- High School Textbook Assistance Fund.
- Expansion of Educational Service Contracting (ESC) scheme.
- Private Education Student Financial Assistance Program (PESFA) voucher system.
- Scholarship grants for valedictorians and salutatorians.
- Education Loan Fund.
- To Teachers:
- In-service training fund.
- College Faculty Development Fund.
Tuition Fee Supplements for Private High School Students
- Provided through voucher system.
- Amount determined by State Assistance Council.
- Government reimburses schools within 120 days post-registration.
- Guarantees slots based on prior year participation.
High School Textbook Assistance Fund
- Established within the DECS.
- Provides textbook purchase assistance per student.
- Assistance capped to equal public high school textbook support.
- Only granted to beneficiaries of tuition supplements or ESC scheme.
Expansion of Educational Service Contracting (ESC) Scheme
- Government contracts private schools to shoulder tuition and fees for enrolled students.
- Includes contracts with private schools where no public high school exists.
- Assistance cap based on public school per student cost.
- Payment to schools within 180 days post-registration.
- Assists based on population proportions.
- Guarantees slots based on prior year participation.
Assistance to College Freshmen (PESFA Program)
- Expanded voucher system for qualified first-year students in degree/non-degree courses.
- Selection based on family income, geographic spread, and competitive exams.
- Allocated according to regional and national priorities.
- Defines underprivileged students as those with combined family income not exceeding P72,000.
- Requires private institutions to grant tuition waivers to 5% of incoming freshmen, including top high school graduates.
- Provides allowances for valedictorians and salutatorians under conditions.
Further Assistance to Private College Students
- Tuition fee supplements for students in priority courses.
- Voucher amounts set by State Assistance Council.
- Governed by conditions similar to private high school tuition supplements.
Education Loan Fund
- "Study Now, Pay Later" scheme.
- Administered by CHED, TESDA, or Student Loan Fund Authority.
- Loans cover tuition, fees, books, subsistence, boarding.
- Tuition fees paid directly to schools.
- Repayment starts two years after employment with max 6% annual interest.
- Social Security System provides low-interest educational loans for members and private schools.
Academic Progress Requirement
- Benefits denied if student fails majority of academic subjects in a school year unless valid cause is proven.
In-Service Training Fund (Inset Fund)
- Established within DECS for private secondary education teacher development.
- Aims to upgrade teaching competencies, modernize techniques, including ICT skills.
- Available only to licensed teachers in participating private high schools.
- Fund per capita not to exceed public secondary education allocation.
College Faculty Development Fund
- Established within TESDA and CHED for private post-secondary teacher development.
- Provides scholarships for graduate degree, and workshops/seminars.
- Scholarship recipients must render return service for each year sponsored.
- Focus on priority courses; prohibits sectarian purposes.
Teachers' Salary Subsidy Fund
- Established within DECS for salary subsidies to private high school teachers.
- Total salary + subsidy capped at 80% of public school teacher's salary.
- Subsidy limited to amount of public school salary increases post-law.
- Requires teachers to be licensed and actively teaching in participating schools.
- Subsidy vouchers reimbursed within 60 days after school year.
- Priority to married teachers supporting families if funds are insufficient.
Program Administration and Composition of State Assistance Council
- Council responsible for policy guidance, monitoring, evaluation, and rules formulation.
- DECS, TESDA, CHED handle day-to-day administration per education level.
- Council chaired by Secretary of Education with co-chairpersons from CHED and TESDA.
- Includes government agency representatives and members from associations of teachers, students, parents, school administrators.
- Council assesses program effectiveness and quality standards of recipient schools.
Appropriations
- Initial funding of P1 billion appropriated from 1998 General Appropriations Act.
- Funds administered as trust fund by State Assistance Council and disbursed regionally.
Penalties
- Violations may lead to barring institutions from program participation.
- Possible administrative and criminal charges against responsible officers.
Repealing and Separability Clauses
- Repeals inconsistent laws, including Presidential Decrees Nos. 932 and 1371.
- Invalidity of any provision does not affect the rest of the law.
Effectivity
- Law effective immediately upon publication in English and Filipino newspapers.
- New program implementations tied to appropriations for the succeeding fiscal year.