Unified student ficial aid for tertiary education

Policy, purpose, and unified approach

Section 2 declares the State policy to promote social justice by providing all citizens access to quality education.
Section 2 requires adequate funding and other mechanisms to increase participation in tertiary education, especially for the poor but academically able and highly motivated.
Section 2 mandates unification and harmonization of existing publicly-funded national government programs for scholarships, grants-in-aid, and student loans for tertiary education to improve efficiency and ensure equitable access.
Section 3 establishes objectives to target beneficiaries effectively, ensure coordination and efficiency, and improve regional equity in distribution of slots.
Section 3 aims to produce highly qualified graduates and technical experts through merit- and talent-based scholarships, grants-in-aid for marginalized sectors, and student loans for liquidity issues.
Section 5 directs UniFAST to harmonize, reform, strengthen, expand, rationalize, and re-focus legislated or ongoing student financial assistance programs for coherence, synchronization, effective funding, and improved coordination.

Core definitions and key terms

Section 4 defines UniFAST as the harmonized, state-run and administered system of scholarships, grants-in-aid, student loans, and other StuFAP modalities under the Act.
Section 4 defines StuFAP as a system of scholarships, grants-in-aid, student loans, subsidies, and other incentives available to eligible students.
Section 4 defines Beneficiary as the recipient of any StuFAP modality such as scholarship, grant-in-aid, or student loan.
Section 4 defines Scholarship as a modality of financial assistance given to eligible students on the basis of merit and/or talent, including academic performance and special technical proficiencies, skills, intellectual pursuits, research and development, innovations, and other creative works.
Section 4 defines Grant-in-Aid as financial assistance to poor but eligible students requiring a minimum competence level to complete tertiary education.
Section 4 defines Student Loan as short-term or long-term loans extended to students facing liquidity problems regardless of economic status, paid by the student, the student’s parents, guardians, or co-makers.
Section 4 defines Cost of Tertiary Education to include: (1) tuition, miscellaneous and other school fees; (2) educational expenses; and (3) cost of living allowance.
Section 4 defines Registry of Programs and Institutions as quality-assured academic and research programs and tertiary institutions certified by CHED and/or TESDA as complying with acceptable standards.

Coverage and student eligibility access

Section 5 provides that UniFAST consists of all existing StuFAP modalities for tertiary education and special purpose education assistance in both public and private institutions, including nationally funded and/or implemented scholarships, grants-in-aid, student loans, and government programs in partnership with stakeholders.
Section 5 provides that a student enrolling in tertiary education—whether in public, private, national, or local institutions—may avail of any one (1) or more StuFAP modalities.
Section 5 requires UniFAST to harmonize and strengthen student financial assistance across implementing entities in their jurisdiction.
Section 5 preserves continuation of effective programs of other government agencies or state-funded StuFAPs with specific and targeted beneficiaries, including (among others) technical-vocational scholarship programs under TESDA, scholarships under the Indigenous Peoples Rights Act (IPRA), NAFES, ACEFS, the Science and Technology Scholarship Act of 1994, the Fast-Tracked S&T Scholarship Act of 2013, E-GASTPE, and programs under CHED and DSWD.
Section 5 requires beneficiary-targeting and standards for selection and retention and awards to be compliant with overall policies on quality, sustainability, and efficiency set by the Board.
Section 5 requires relevant government agencies to submit an annual report on implementation of their StuFAPs to the UniFAST Board.
Section 6 and Sections 7–8 provide the institutional modalities: scholarships, grants-in-aid, and a national student loan program pursued through Board planning.

UniFAST modalities and amounts

Section 6 establishes a unified, improved, and expanded government-funded scholarship program.
Section 6 requires the Board to identify beneficiaries using objective indicators from credible databases, including students whose families are beneficiaries of poverty alleviation programs.
Section 6 requires prioritization of beneficiaries under the Iskolar ng Bayan Act.
Section 6 mandates that the Board determine scholarship amounts considering actual costs in top public and private HEIs, but scholarship amounts must not exceed the actual cost of tertiary education.
Section 7 requires grants-in-aid to improve equity and facilitate democratic access for students in poor families and marginalized sectors.
Section 7 requires the Board to identify grantees using objective indicators from credible databases, including beneficiaries of poverty alleviation programs.
Section 7 mandates that grants-in-aid amounts are determined by the Board considering actual costs in top public and private HEIs.
Section 8 requires the Board to pursue a long-term plan for a self-sustaining National Student Loan Program (NSLP) for qualified students’ short-term and long-term assistance.
Section 8 requires the NSLP plan to be based on systematic evaluation of lessons learned from current and past student loan schemes, local and international.
Section 8 requires professionalization of NSLP management, establishment of an appropriate organizational setup, and accountability mechanisms, sanctions, and incentives for effective and efficient loan repayment collection.
Section 8 requires exploration of processes to minimize risk of non-repayment and collection costs and encourages private sector participation.
Section 8 requires feasibility study by GSIS and SSS of an automatic system of salary deduction for student loan repayments of members with unpaid student loans, consistent with labor laws and a memorandum of agreement with the Board.
Section 8 grants priority in student loan grants to the top ten (10) graduates of all public high schools.
Section 8 requires that the loan be repaid in installment basis after the student graduates or leaves the educational institution.
Section 8 provides that the educational loan shall be sourced from five percent (5%) of the total loanable portfolio of the Development Bank of the Philippines, without prejudice to creation of other student loan programs.
Section 9 authorizes the Board to develop other StuFAP modalities, including private scholarship or sponsorship programs and student or graduate assistance programs, consistent with Board standards and guidelines.

Eligibility rules, terms, sanctions, and limits

Section 10 requires the Board to promulgate and periodically review qualification criteria for student financial assistance applications.
Section 10 requires minimum qualification (a) Filipino citizenship, with an exemption the Board may grant to foreign students based on reciprocal programs providing similar benefits to Filipino students (including exchange programs and international reciprocal scholarships).
Section 10 requires high school graduation or equivalent from duly authorized institutions.
Section 10 requires good moral character with no criminal record, with waiver for programs targeting children in conflict with the law and/or undergoing or having undergone rehabilitation.
Section 10 requires admission to the student’s chosen HEI or TVI included in the Registry of Programs and Institutions, and allows applicants to begin processing within a reasonable time frame set by the Board to allow sufficient time to enroll.
Section 10 requires, for TVET applicants, passing the TESDA screening/assessment procedure, trade test, or skills competency evaluation.
Section 10 requires applicants to declare whether they are already beneficiaries of other student financial assistance, including government StuFAP; if the existing grant does not cover the full cost of tertiary education at the HEI/TVI where enrolled, the applicant may still avail of StuFAP for the remaining portion.
Section 10 requires scholarship applicants to obtain at least the score required by the Board for the Qualifying Examination System for Scoring Students.
Section 10 requires applicants to possess other qualifications prescribed by the Board.
Section 11 provides that the right to avail of StuFAP benefits does not apply if the student fails to comply with requirements for good academic standing and other conditions set by the Board.
Section 11 requires the Board to consider supervening circumstances affecting studies, including death, lingering illness of a family member, or other personal reasons.
Section 11 prohibits the Board from unduly depriving eligible applicants of financial assistance.
Section 11 allows the Board to direct students to enroll in priority courses identified by CHED or TESDA based on national development plans and labor force demands in order to avail of student financial assistance.
Section 11 prohibits denying financial assistance to applicants or beneficiaries already enrolled in non-priority courses when priority courses are not offered in the student’s chosen tertiary education institution.
Section 12 authorizes the Board and/or implementing agency to impose reasonable terms and conditions of availment prior to granting scholarship or student loan, or other StuFAP modalities.
Section 13 authorizes the Board and/or implementing agency to impose reasonable sanctions on beneficiaries found to have violated provisions of their contract.

UniFAST Board: composition, powers, meetings, quorum

Section 14 creates the UniFAST Board attached to CHED, with the CHED Chairperson as ex officio Chairperson.
Section 14 sets Board composition as: Secretary of DOST (ex officio Co-Chairperson), TESDA Director-General (ex officio Co-Chairperson), Secretary of DepED (ex officio member), DOLE representative (ex officio member), NEDA representative (ex officio member), and NYC representative (ex officio member).
Section 15 requires the Board to formulate and approve UniFAST policies and strategies and review existing policies for consistency with the Act.
Section 15 requires coordination with implementing agencies for formulation, approval, and issuance of guidelines for UniFAST.
Section 15 requires the Board to support implementing agencies to ensure effective implementation.
Section 15 requires the Board to prepare, approve, and submit its own budget proposal to CHED, including vetting, modifying, and integrating requests for public funding of tertiary education StuFAPs.
Section 15 requires the Board to promulgate minimum guidelines and rules for determining qualified beneficiaries.
Section 15 requires the Board to provide general contract guidelines specifying rights and obligations of student beneficiaries, including a service clause or other cost-recovery stipulations consistent with national, social, economic, and human resources development plans, subject to Section 12.
Section 15 requires monitoring, assessment, and impact evaluation of StuFAPs to determine adoption, continuation, or termination.
Section 15 requires adoption of a Qualifying Examination System for Scoring Students for merit- and talent-based StuFAPS and determination of eligibility for grants-in-aid and other modalities.
Section 15 requires providing and promoting supportive policy for private sector participation.
Section 15 requires establishing and maintaining, on CHED and TESDA public websites, a database containing information on StuFAPs and accredited public and private tertiary education programs and institutions.
Section 15 requires dissemination of information on that database to enable informed decision-making and freedom of choice among accredited public and private tertiary education programs and institutions.
Section 15 requires designing a program to generate funds for UniFAST.
Section 15 authorizes facilitating donations, legacies, gifts, and contributions in cash or in kind from public and private sources and tapping expert services, consistent with Section 20, and provides that duly received donations, legacies, and contributions of cash or property are exempt from donor’s tax and allowable as income tax deductions under Section 34-H of the National Internal Revenue Code of 1997, as amended.
Section 15 authorizes appointment of UniFAST Secretariat members upon the recommendation of the Executive Director.
Section 15 authorizes appointment of one (1) or more legal officers with authority to file cases in court.
Section 15 requires setting up, maintaining, and updating an official registry of quality-assured academic and research programs and tertiary education institutions.
Section 15 requires approving honorarium and per diem for Board members according to relevant government rules.
Section 15 requires an efficient tracking system of student-borrowers and systems for disbursement and collection of loan payments, including entering into agreements with specified agencies and institutions (including BIR, GSIS, SSS, NBI, DFA, POEA, BI, BSP, BAP, CIC, private and public banks, and banking intermediaries) and setting up mechanisms for blacklisting of defaulting student-borrowers in applications for loans, credit cards, and other credit facilities.
Section 15 authorizes the Board to perform other necessary and incidental powers.
Section 16 requires 12 regular monthly meetings per year, with the Board determining after four (4) years a frequency not less than once every quarter.
Section 16 authorizes special meetings when necessary upon written notice at least three (3) working days prior to the meeting.
Section 16 provides a rotational presiding rule when the Chairperson is absent, and provides attendance rules for rotating presiding roles including requirements that representatives be at least Assistant Secretary level for specified officials.
Section 16 requires minutes to be attested to by simple majority of all regular Board members.
Section 16 requires at least one meeting in every quarter attended by the Chairperson and Co-Chairpersons devoted to a review of UniFAST performance using specified indicators, including current beneficiaries, dropouts and reasons, average academic performance by year, breakdowns by field of study, district and region of origin, place of study, sex, family income size and livelihood, completion rate, measures of success, and other matters under the Act.
Section 17 sets quorum as attendance of a simple majority of Board members.

Secretariat and Executive Director functions

Section 18 creates a Secretariat headed by an Executive Director to support the Board.
Section 18 requires the Board to provide the Secretariat’s institutional setup, employee qualifications, and compensation consistent with Civil Service and Career Executive Service rules and the Salary Standardization Law and to determine Secretariat size and composition.
Section 18 requires the Secretariat to provide technical and administrative support to the Board.
Section 18 requires the Secretariat to review and assess Board programs, plans of action, and agenda and recommend approval or cancellation.
Section 18 requires the Secretariat to review and assess implementing agency programs, plans of action, and agenda, including funding proposals, and recommend approval or cancellation to the Board.
Section 18 requires the Secretariat to maintain and update a repository of data and information on all StuFAPs for tertiary education by any government agency and maintain a comprehensive database accessible to the public, consistent with transparency and good governance.
Section 18 requires the Secretariat to recommend, manage, and monitor contracting out of UniFAST activities best accomplished by third party providers, subject to Board approval.
Section 19 provides that the Executive Director is appointed by the Board, has the rank of Assistant Secretary, and must have minimum seven (7) years managerial experience, a Master’s degree, and be Career Executive Service eligible.
Section 19 requires the Executive Director to coordinate StuFAPs implemented by government agencies and partners, manage partner agency relationships, supervise the Secretariat, ensure accurate and timely technical inputs to guide policy-making, ensure dissemination and implementation of Board decisions, submit an annual report covering operations, status of programs funded, financial condition, and budget recommendations for the ensuing year, and perform other Board-determined duties.

Funds management, reporting, monitoring, oversight

Section 20 requires that all public funds allocated to government StuFAPs be managed under standard government accounting and auditing rules and require specialized processes for transparency and accountability appropriate to the fund purpose.
Section 21 requires each implementing agency to keep a separate book of accounts for UniFAST StuFAP funds following standard government accounting rules.
Section 21 authorizes implementing agencies to adopt additional measures for safety, particularly in authorizing payments and disbursements, provided these facilitate convenient and efficient delivery of assistance.
Section 21 requires mid-year and annual reports by all implementing agencies, consisting of two parts: a financial statement and a report of operations showing fund accomplishments.
Section 21 requires submission of those reports to Congress and the Department of Budget and Management for decision-making and requires making reports available to other interested parties for valid and acceptable reasons.
Section 21 requires that the list of beneficiaries and the amount of financial assistance received be made available upon request.
Section 22 requires national government implementing agencies to submit reports, make selection processes transparent to the public, and comply with Board requirements to align programs with national policy framework on student financial assistance.
Section 23 requires rigorous evaluation by the Board of UniFAST impact and regular monitoring of progress toward defined results and target values.
Section 23 requires impact evaluation to include education outcomes (including enrollment in level IV-accredited HEIs and number of graduates by type of study program), economic indicators (income and employment after graduation), and indicators for contributions to community service and public good.
Section 23 requires additional performance and progress measurement using coverage by scholarships, grants-in-aid, student loans, or other modalities; type of study program; level of HEI enrolled in; and initial economic status, and requires tracer studies and survey data for credible impact evaluation analyses as determined by the Board.
Section 23 requires major programs to be evaluated within five (5) years from Board implementation date.
Section 24 creates a Congressional Oversight Committee on the UniFAST composed of five (5) members each from Senate Education, Arts and Culture and House Higher and Technical Education Committees.
Section 24 requires minority representation: the Senate appointees must include at least two (2) Senators representing the minority, and the House appointees must include at least two (2) Congressmen representing the minority.
Section 24 grants the Oversight Committee power to oversee implementation of the Act, including inquiry into the Board’s book of accounts.
Section 24 provides that the Oversight Committee secretariat is drawn from secretariat personnel of the Senate Education, Arts and Culture Committee and House Higher and Technical Education Committee, and expenses are funded from appropriations of both the Senate and the House.
Section 24 requires the Board to submit to the Oversight Committee, periodically, financial statements, policy statements, issuances, and other documents and information subject to existing laws and regulations.

Appropriations and other funding sources

Section 25 provides that funding for creation of the Board and Secretariat and initial implementation is charged against the current year’s appropriation of CHED.
Section 25 provides that the budget for implementation of existing StuFAPs and any new modality established is charged against implementing agencies’ budgets.
Section 25 provides that thereafter, amounts necessary for continued implementation are included in the Annual General Appropriations Act.
Section 26 authorizes tapping other sources of funds including grants, donations, and assistance from local and foreign donor agencies, public and private entities, and private domestic and international sources, subject to regular auditing guidelines and procedures.
Section 26 provides that foreign donations acceptance is subject to existing government rules and regulations.
Section 26 requires donations, grants, endowments, and other contributions given to specific agencies for StuFAPs to be retained by the identified done agency for the specific purpose under government auditing rules and regulations.
Section 26 encourages cost-sharing or counterparting schemes among national government and LGUs to support UniFAST implementation.

Implementation rules and final clauses

Section 27 requires the Board, within thirty (30) days from effectivity, to constitute itself in consultation with relevant tertiary education stakeholders, and to promulgate Implementing Rules and Regulations within sixty (60) days from constitution of the Board.
Section 28 provides a separability clause: unconstitutional or invalid provisions do not affect other provisions continuing in force.
Section 29 provides a non-impairment clause: the Act does not diminish, impair, or repeal rights granted to disadvantaged, marginalized, or specific sectors under existing laws.
Section 30 provides a repealing clause: laws, executive orders, presidential decrees, and IRR inconsistent with the Act are repealed or modified accordingly, including provisions of Republic Act No. 8545 on tertiary education.
Section 31 fixes effectivity at 15 days after publication in the Official Gazette or a newspaper of general circulation.