Law Summary
Scope and Definitions
- Covers tuition fees, educational expenses, and living allowances in tertiary education.
- Defines graduate courses, undergraduate education, HEIs, SUCs, LUCs, TVET, TVIs, private institutions, and various terms used in the law.
- Unified Student Financial Assistance System for Tertiary Education (UniFAST) manages scholarships, grants, and loans.
Free Higher Education in State Institutions
- Free tuition and other school fees apply to all Filipino students enrolled in SUCs and LUCs.
- Eligibility contingent on passing entrance exams and retention requirements.
- Students with financial capacity may opt out or contribute voluntarily.
- Budget for free tuition based on projected enrollees, serving as baseline for national budgeting.
Free Technical-Vocational Education
- Free tuition and fees for students enrolled in post-secondary TVET programs at state-run TVIs under TESDA.
- Voluntary opt-out and contribution mechanisms also apply.
- Budget determined based on course enrollment projections.
Exceptions to Free Education
- Students with prior bachelor's or equivalent degrees are ineligible.
- Students failing to meet admission, retention, or timely completion rules are excluded.
- In state-run TVIs, students with equivalent or higher qualifications are excluded.
- Ineligible students must pay tuition and fees as set by governing boards.
Tertiary Education Subsidy (TES)
- Subsidy supports costs in undergraduate-post-secondary programs including private HEIs and TVIs.
- Prioritization for subsidy based on socio-economic status using Listahanan 2.0.
- TES covers tuition, school fees, allowances for books, transportation, room and board, and disability-related expenses.
- Also covers professional license or certification costs for qualifying students.
Student Loan Program
- Loans available for tertiary education including undergraduate, graduate, medicine, law, and licensure exam review costs.
- Administered by UniFAST Board with budgets from CHED and TESDA.
- Repayment through deduction from SSS/GSIS contributions once employment reaches a set threshold.
- Loan repayment guidelines extend to self-employed, OFWs, and others outside SSS/GSIS coverage.
Institutional Requirements
- SUCs and LUCs must establish learner information systems.
- Submit data on school quality and performance to CHED.
- Develop and update ten-year development plans including infrastructure.
Quality Control and Budget Endorsement
- CHED and TESDA ensure quality standards for SUC, LUC budgets, TES, and student loan programs.
- UniFAST Board to define quality indicators.
Prohibited Acts and Penalties
- Collection of tuition and school fees from qualified students in SUCs, LUCs, and state-run TVIs is unlawful.
- Voluntary student contributions or opt-outs are exempt from this prohibition.
- Violators face imprisonment from six months to one year and fines from P20,000 to P100,000.
- Penalties also apply to responsible university or college officials.
Governance: UniFAST Board Expansion
- Inclusion of representatives from State Universities, Private Educational Associations, Local Colleges, GSIS, and SSS.
- Board empowered to organize, develop staff, and engage expert service providers.
Reporting Obligations
- SUCs, LUCs, and state-run TVIs must report names of eligible students within five days after late registration.
Funding and Appropriations
- Budget appropriation is included in the General Appropriations Act under SUCs, CHED, and TESDA.
- Up to 3% of TES and loan program funds may be used for UniFAST administrative costs.
- National government may prioritize ODA and tap donations or grants for financing.
Oversight and Monitoring
- Creation of a Joint Congressional Oversight Committee composed of Senate and House members.
- Funded from the appropriations of both chambers of Congress.
Implementation and Legal Provisions
- UniFAST Board to promulgate implementing rules within 60 days of effectivity.
- Failure to promulgate rules does not delay law implementation.
- Separability clause ensures unaffected parts remain valid if any part is declared unconstitutional.
- Repeals inconsistent laws and regulations.
- The Act takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.