Law Summary
Criteria for Government Assistance
- Assistance programs based on tuition fees, socio-economic needs, school performance, student qualifications, financial need, regional distribution, and student population size.
- Student grantees must be enrolled in accredited or applying-for-accreditation schools under recognized accrediting bodies.
- Preference for students from families earning no more than P36,000 annually or as determined.
- Inclusion covers post-secondary, vocational, technical courses, and community colleges.
- Students must be Filipino citizens and encouraged to study in their home region.
Forms of Government Assistance
- Tuition fee supplements for private high school students including vocational/technical courses.
- High School Textbook Assistance Fund for eligible private schools.
- Expansion of the Educational Service Contracting (ESC) Scheme.
- Private Education Student Financial Assistance Program (PESFA) voucher system.
- Scholarships for valedictorians and salutatorians.
- Tuition supplements to private college/university students.
- Education Loan Fund.
- College Faculty Development Fund.
Tuition Fee Supplement for Private High School Students
- Voucher system provides financial aid to students in schools charging less than P1,500/year.
- Voucher amount set at P290, with conditions on tuition paid and government reimbursement timelines.
- No assistance to students in schools charging over P1,500/year; such schools may raise tuition subject to regulation.
- At least 70% of subsidies/tuition increases must be allocated to salaries and benefits of teaching/non-teaching personnel, excluding administrators who are principal stockholders.
- At least 20% allocated to modernization and operational costs of school facilities.
- Schools must maintain separate accounting records of government assistance and tuition fee use.
High School Textbook Assistance Fund
- Established within the Department of Education for private schools charging under P1,500/year.
- Funds used exclusively for non-sectarian textbooks approved by the Department.
Expansion of Educational Service Contracting (ESC) Scheme
- DECS contracts with private schools to cover tuition for excess public high school students.
- Contracts extended to private schools in communities lacking public high schools.
- Gradual increase in assisted schools to cover all qualifying schools within four years.
- Assistance amount capped at the per-student cost of public high schools.
- Payment deadlines and regional allocation of assistance detailed.
Assistance to College Freshmen
- PESFA program expanded to cover minimum percentages of freshmen from 10% (1989) to 25% (1992 onward).
- Selection based on family income, geographic distribution, and examination results.
- Allocation aligns with regional/national plans and priority courses.
- Underprivileged students defined as those from families earning no more than P36,000 annually.
- Private colleges/universities must provide tuition waivers for 5% of freshmen, including valedictorians and salutatorians from qualifying high schools.
- Additional government allowance may be granted to high school honorees subject to meeting admission and retention criteria.
Further Assistance to Non-Freshmen College Students
- Tuition supplements via voucher system for students in priority programs at schools charging P80 or less per unit.
- Assistance equals tuition fee increases, with fee increases capped at P12 per unit.
- No assistance for students in more expensive schools; however, these schools must grant tuition waivers to 5% of students.
- Accredited schools charging less than P80 per unit may set their own tuition rates subject to regulation.
- Conditions for government assistance similar to those for high school tuition help.
Procedures for Tuition Fee Increases
- Mandatory consultations involving school administration and parents/teachers associations (secondary schools) or student governments, alumni, and faculty associations (colleges).
- Audited financial statements must be made available.
- Disputes resolved by arbitration involving alumni associations or impartial entities.
Education Loan Fund
- "Study Now, Pay Later" loans established under DECS or delegated authority.
- Loans cover tuition, fees, books, subsistence, and lodging.
- Tuition payments made directly to schools.
- Repayment begins two years after employment, with interest capped at 12% per annum.
- Social Security System provides low-interest loans for education and school infrastructure.
Limitations on Student Eligibility
- Benefits denied to students who fail majority of subjects for one school year unless due to valid cause.
- Benefits denied if students enroll outside their domiciliary region unless pursuing priority courses not offered locally.
College Faculty Development Fund
- Fund established to provide scholarships for graduate degrees and non-degree training for private college faculty.
- Recipients must serve three years for every year of scholarship granted.
- Scholarships limited to priority courses and exclude sectarian objectives.
Program Administration
- State Assistance Council (SAC) provides policy guidance, monitoring, evaluation, and rule-making.
- DECS handles day-to-day administration and may partner with government/private entities.
- SAC chaired by Secretary of Education with members from NEDA, DBM, DOST, and sector representatives appointed by the President.
- SAC reviews program effectiveness and accreditation status of participating institutions.
Appropriations and Funding Sources
- Funding allocated from DECS appropriations, coconut levies, designated taxes, regulatory authority collections, Development Bank of the Philippines income, Overseas Welfare Fund, and other lump sum appropriations.
- Total authorized budget capped at P500 million for 1989; further funding included in annual appropriations.
- Per-student assistance amounts fixed unless Congress decides otherwise.
Penalties for Violations
- Schools violating provisions or related rules may be barred from participation and other DECS programs.
- Refusal to provide audited financial statements during tuition consultations results in forfeiture of tuition increase rights and other penalties.
Repeal and Separability
- Inconsistent laws such as Presidential Decrees Nos. 932 and 1371 are repealed or modified accordingly.
- Unconstitutional provisions shall not affect the validity of the remaining law.
Effectivity
- The Act takes effect immediately upon publication in English and Filipino newspapers of general circulation.