Law Summary
Declaration of Policy
- Promotes accessible, quality education for all Filipinos.
- Recognizes complementary roles of public and private educational institutions.
- Emphasizes government responsibility to provide basic, post-secondary vocational/technical, and higher education.
- Defines education levels such as elementary (6 years), secondary (4 years), post-secondary vocational/technical, and higher education.
Criteria for Assistance
- Assistance programs consider tuition fees, socioeconomic needs prioritizing Social Reform Agenda provinces, school performance, academic qualifications, financial needs of students/teachers/schools, geographic distribution, and student population size.
- Student grantees must enroll in accredited or applying-to-be-accredited schools.
- Preference given to students with family income not exceeding P72,000 or council-determined amounts.
- Assistance extends to community colleges.
- Programs encourage regional study to minimize displacement.
- Assistance limited to Filipino citizens.
- State Assistance Council, DECS, CHED, and TESDA set quality standards.
- Assistance allocation respects existing income allocation proportions.
Forms of Assistance
- Assistance to students includes:
- Tuition fee supplements for private high school students.
- High School Textbook Assistance Fund.
- Expansion of Educational Service Contracting (ESC) Scheme.
- Voucher system for Private Education Student Financial Assistance Program (PESFA).
- Scholarships for valedictorians and salutatorians.
- Tuition fee supplements for private college/university students.
- Education Loan Fund.
- Assistance to teachers includes:
- In-service training funds for private high school teachers.
- College Faculty Development Fund.
Tuition Fee Supplements for Private High School Students
- Government provides vouchers for tuition fee assistance.
- Voucher amounts determined by State Assistance Council.
- Schools reimbursed within 120 days post-registration.
- Guaranteed assistance slots based on prior year allocations.
High School Textbook Assistance Fund
- Established within DECS.
- Provides per student assistance for textbooks, matching amounts given to public high school students.
- Available only to beneficiaries of tuition fee supplements and ESC scheme.
Expansion of Educational Service Contracting (ESC) Scheme
- DECS contracts with private schools to cover tuition for enrolled students.
- Includes schools where no public high schools exist.
- Assistance capped at per-student public high school cost.
- Payment to schools within 180 days post-registration.
- Funds allocated regionally based on population demographics.
- Guaranteed slots based on previous year usage; adjustments possible.
Assistance to College Freshmen (PESFA Voucher System)
- Expanded PESFA covers degree and non-degree vocational/technical courses.
- Targets underprivileged first-year students, selected by family income, geography, and competitive exams (CHED/TESDA).
- Equitable provincial and city allocation focusing on priority courses.
- Underprivileged defined as income ≤ P72,000.
- Private institutions to provide full/half tuition waivers for 5% of freshmen including valedictorians/salutatorians.
- Valedictorians may receive government allowances if enrolled in priority courses.
- In large classes (>250), salutatorians and first honorable mentions may also receive allowances.
Tuition Fee Supplements for Private College, Vocational, and Technical Students
- Voucher system applies to students in priority courses.
- Voucher amounts by State Assistance Council.
- Conditions follow those for private high school tuition supplements.
Education Loan Fund
- "Study Now, Pay Later" plan created.
- Administered by CHED and TESDA or Student Loan Fund Authority.
- Loans cover tuition, fees, books, subsistence, and lodging.
- Tuition payments made directly to schools.
- Repayment begins two years after employment.
- Interest capped at 6% per annum.
- Social Security System to provide low-interest educational loans for members and private institutions' infrastructure.
Academic Performance Requirement
- Students failing majority of subjects in a year forfeit benefits unless failure due to valid causes beyond control.
In-service Training Fund (Inset Fund)
- Established within DECS.
- For upgrading private high school teachers’ knowledge and teaching skills, including modern techniques and technology use.
- Available only to licensed teachers in participating schools.
- Fund allocation per capita shall not exceed that for public secondary education.
College Faculty Development Fund
- Established within TESDA and CHED.
- Provides scholarships for graduate degrees and workshops for faculty in private post-secondary vocational/technical and higher educational institutions.
- Recipients must render return service as determined by State Assistance Council.
- Scholarships prioritize TESDA and CHED designated priority courses.
- Scholarships must avoid sectarian promotion or inhibition.
Teachers’ Salary Subsidy Fund
- Established within DECS to subsidize salaries of private high school teachers.
- Total salary including subsidy capped at 80% of public sector counterparts.
- Monthly subsidy shall not exceed public school teachers’ salary increases after Act's effectivity.
- Recipients must be licensed by PRC.
- Subsidy vouchers reimbursed within 60 days after school year ends upon qualification proof.
- Maintain current allocation out of tuition and other income increases.
- Priority given to married teachers supporting families when funds are insufficient.
Program Administration and Governance
- State Assistance Council responsible for policy, monitoring, evaluation, and regulation formulation.
- DECS, TESDA, CHED handle daily administration and implementation for secondary, post-secondary vocational/technical, and higher education, respectively.
- Council chaired by Secretary of Education, Culture and Sports; co-chaired by CHED Chairperson and TESDA Director-General.
- Members include representatives from NEDA, DBM, DOST, and representatives from nationwide teacher, student, parent, and school administrator groups.
- Congressional education committee representatives act as resource persons.
- Council establishes criteria for eligible institutions and evaluates program effectiveness.
Appropriations and Trust Fund
- Initial appropriations of P1 billion from the 1998 General Appropriations Act.
- Funds constituted as a trust fund administered by the State Assistance Council and released automatically to DECS regional offices.
Penalties
- Institutions violating the Act or regulations may be barred from program participation by DECS, TESDA, and CHED upon Council recommendation.
- Administrative and criminal charges may be pursued against offending schools and officials.
Repealing and Separability Clauses
- Inconsistent laws, decrees, and regulations, including Presidential Decrees Nos. 932 and 1371, are repealed or modified.
- Unconstitutional provisions shall not affect validity of other provisions.
Effectivity
- Act effective immediately upon publication in English and Filipino newspapers of general circulation.
- Implementation of new assistance programs effective starting the school year of the succeeding fiscal year after appropriations approval.