Establishment of Educational Assistance Act of 1976
- The decree formally known as the "Educational Assistance Act of 1976".
- Empowers creation and regulation of financial assistance schemes for students.
Educational Loan Funds (ELF) Structure and Administration
- Initial corpus of Fifty Million Pesos (P50,000,000) established.
- Funds sourced from Social Security System (SSS) and Government Service Insurance System (GSIS), each contributing Twenty-Five Million Pesos.
- Annual contribution of Five Million Pesos starting 1976-77 from SSS and GSIS investment portfolios.
- Additional contributions of Five Million Pesos each from Philippine National Bank (PNB), Development Bank of the Philippines (DBP), and Land Bank.
- Private banks and Amanah Bank mandated to allocate portions of their investible funds.
- Loan amounts based on duration of study and actual educational expenses.
- Loans cover tuition, school fees, board, lodging, pocket money, books, and miscellaneous costs.
- Loans independent of borrower parents’ SSS or GSIS membership status.
- Fund operates alongside existing SSS and GSIS educational programs.
Educational Loan Guarantee Fund
- Initial one million pesos (P1,000,000) appropriated from the National Treasury.
- Fund secures loans extended under the program.
- Earnings and charges from loan fund operations accrue to Guarantee Fund.
- Managed by the Educational Assistance Policy Council.
Funding and Contributions
- Council authorized to accept donations, legacies, grants-in-aid, and contributions to support loan and guarantee funds.
Loan Repayment Terms
- Repayment mandated to commence immediately upon borrower's employment.
- Payroll check-off system implemented for loan collection.
Creation and Composition of the Educational Assistance Policy Council
- Council chaired by Secretary of Education and Culture.
- Vice-chair held by Secretary of Labor.
- Members include: Director-General of NEDA, Secretary of Finance, Secretary of Social Welfare, Budget Commissioner, Presidential Assistant on Youth and Sports Development, Central Bank Governor, SSS Administrator, GSIS General Manager, or their alternates.
Powers and Functions of the Council
- Formulate policies, measures, rules, and regulations for program implementation and enhancement.
- Issue guidelines for existing and future educational assistance programs across government and private sectors.
- Facilitate cooperation with educational institutions and relevant entities.
- Perform additional duties as directed by the President.
Inter-Agency Secretariat
- Created to assist the Council.
- Composition and function determined by the Council.
- Annual budget of Two Hundred Thousand Pesos (P200,000) appropriated under the Department of Education and Culture for secretariat operations.
Applicant Qualifications
- Applicant must be a Filipino citizen who graduated from an authorized secondary school (public or private).
- Applicant must be poor but deserving.
- Council has authority to set additional qualification criteria.
Implementation and Effectivity
- Enforcement commences upon publication of implementing rules and regulations in two newspapers of general circulation.
Repeal and Abolition of Conflicting Laws
- Student Loan Fund Authority under RA 6014 abolished.
- All inconsistent acts or parts thereof repealed or modified accordingly.