Law Summary

Introduction

Presidential Decree No. 932, enacted on May 13, 1976, establishes the "Educational Assistance Act of 1976" aimed at democratizing educational opportunities in the Philippines through the "Study Now Pay Later Plan." This decree addresses the financial barriers that prevent deserving students from pursuing higher education.

Section 1: Title and Purpose

• Legal Principle: This decree is officially referred to as the "Educational Assistance Act of 1976."
• Purpose: It seeks to provide financial assistance to deserving students to facilitate access to education, emphasizing the need to supplement existing scholarship programs.

Section 2: Educational Loan Funds (ELF)

• Legal Principle: Establishment of loan funds to assist financially needy students.
• Definitions:
  • Educational Loan Funds (ELF): A fund initially set at P50,000,000.00, administered by the Social Security System (SSS) and the Government Service Insurance System (GSIS).
• Requirements and Procedures:
  • Each of SSS and GSIS will allocate P25,000,000.00, contributing P5,000,000.00 annually starting from the 1976-77 calendar year.
  • The Philippine National Bank (PNB), Department of Education (DEP), and Land Bank will also contribute P5,000,000.00 each.
  • Private banks and Amanah Bank are required to set aside a portion of their funds for this purpose.
• Key Details:
  • Loans will cover tuition, school fees, living expenses, and supplies.
  • A loan guarantee fund of P1,000,000.00 is created to support these loans.

Section 3: Donations and Contributions

• Legal Principle: The Council may accept various forms of financial contributions to enhance loan and guarantee funds.
• Key Details:
  • Contributions may include donations, legacies, and grants-in-aid.

Section 4: Loan Repayment

• Legal Principle: Immediate repayment of loans upon employment.
• Requirements:
  • Payments will be made through a payroll check-off system.

Section 5: Policy Making Council

• Legal Principle: Creation of a council to oversee the program.
• Composition:
  • Chaired by the Secretary of Education and Culture, with members including key government officials such as the Secretary of Labor and the Director-General of the NEDA.
• Functions:
  • The Council will determine policies, issue regulations, and oversee the implementation of the program.

Section 6: Inter-Agency Secretariat

• Legal Principle: Establishment of a secretariat to assist the Council.
• Budget:
  • An annual budget of P200,000.00 is allocated to finance the operations of this secretariat.

Section 7: Qualifications of Applicants

• Legal Principle: Establishment of eligibility criteria for applicants.
• Requirements:
  • Filipino citizens who graduate from recognized secondary schools and demonstrate financial need.
• Additional Qualifications:
  • The Council may determine other qualifications as necessary.

Section 8: Effectivity

• Legal Principle: The decree takes effect upon publication of its implementing rules.
• Timeframe: Publication must occur in two newspapers of general circulation in the Philippines.

Section 9: Repeal of Previous Law

• Legal Principle: Abolishment of the Student Loan Fund Authority under RA 6014.
• Consequences:
  • All inconsistent laws or acts are repealed or modified accordingly.

Key Takeaways

• The "Educational Assistance Act of 1976" aims to provide financial support to deserving students through established loan funds and a guarantee scheme.
• A dedicated council will oversee the program's implementation, ensuring appropriate policies and guidelines are in place.
• Financial contributions from various entities are encouraged to sustain the loan and guarantee funds.
• The Act emphasizes immediate loan repayments upon employment, promoting accountability among beneficiaries.
• Eligibility is primarily based on financial need, with additional criteria set by the overseeing Council.