Free Tuition and Subsidy for Tertiary Education

Policy and purpose of the Act

The State declares quality education as an inalienable right of all Filipinos and adopts a policy to protect and promote students’ rights to quality education at all levels (Section 2).
The State commits to making quality education accessible to all through appropriate steps (Section 2).
The State recognizes the complementary roles of public and private higher education institutions and technical-vocational institutions in the educational system (Section 2).
The State directs mechanisms to: increase participation in tertiary education among all socioeconomic classes; provide equal opportunity in both private and public institutions; and prioritize academically able students from poor families (Section 2).
The State requires optimized utilization of government resources and provides guidance and incentives to help young Filipinos in career choices and human resource development (Section 2).
The State recognizes the complementary roles of public and private institutions in the tertiary educational system (Section 2).

Key definitions and terms

“Cost of Tertiary Education” includes (1) tuition and other school fees, (2) educational expenses, and (3) the cost of living allowance (Section 3(a)).
“Graduate courses” are higher education programs leading to certificate, diploma, master's or doctorate degrees, as authorized and recognized by CHED (Section 3(b)).
“Higher education” covers programs requiring completion of secondary education and leading to bachelor and advanced degrees, including associate degrees (Section 3(c)).
“Higher Education Institution (HEI)” is an institution authorized and recognized by CHED to offer bachelor’s degree or graduate courses (Section 3(d)).
“Local universities and colleges (LUCs)” are CHED-accredited public HEIs established by LGUs through an enabling ordinance, financed and supported by the concerned LGU, and compliant with CHED policies, standards, and guidelines (Section 3(e)).
“Listahanan 2.0” is the NHTS-PR information management of DSWD identifying who and where the poor are, and providing a database of poor families for identifying potential beneficiaries (Section 3(f)).
“Other school fees” include fees charged by HEIs and TVIs supporting instruction, specifically: library fees, computer fees, laboratory fees, school ID fees, athletic fees, admission fees, development fees, guidance fees, handbook fees, entrance fees, registration fees, medical and dental fees, cultural fees and other similar or related fees (Section 3(h)).
“Private education institution” is a HEI not owned and controlled by the government or its instrumentalities (Section 3(i)).
“Private technical-vocational institution” is a post-secondary TVET institution run by the private sector offering programs registered with TESDA (Section 3(j)).
“Qualified student” is any student who possesses all qualifications under Sections 4 and 5 and none of the disqualifications under Section 6 (Section 3(k)).
“State-run technical-vocational institutions” are TVIs operated by TESDA or LGUs, provided LGU-run TVIs are accredited by TESDA (Section 3(l)).
“State universities and colleges (SUCs)” are public HEIs established by national laws, financed and maintained by the national government, and governed by their independent boards of trustees or regents (Section 3(m)).
“Student loan program for tertiary education” refers to the loan program established under Section 8 (Section 3(n)).
“Technical-Vocational Education and Training (TVET)” is post-secondary and lower tertiary education designed as nondegree programs preparing technicians and other middle-level workers through general education, theoretical, scientific and technological studies, and job skills training (Section 3(o)).
“Technical-Vocational Institutions (TVIs)” are learning institutions offering post-secondary TVET (Section 3(p)).
“Tertiary education” covers post-secondary nondegree diploma, TVET, higher education programs including graduate education (Section 3(q)).
“Tertiary education subsidy (TES)” refers to the subsidy established under Section 7 (Section 3(r)).
“Tuition fees” are fees charged for the subjects or course enrolled in by a tertiary education student (Section 3(s)).
“Undergraduate courses” are programs leading to a degree authorized and recognized by CHED (Section 3(t)).
“Unified Student Financial Assistance System for Tertiary Education (UniFAST)” is the harmonized, state-run and administered system of higher education and technical-vocational scholarships, grants-in-aid, student loans, and other modalities under Republic Act No. 10687 (Section 3(u)).

Who gets free tuition and coverage

All Filipino students currently enrolled at effectivity or enrolling anytime thereafter in covered programs in SUCs and LUCs are exempt from tuition and other school fees for units enrolled (Section 4).
Covered SUC/LUC programs are those in pursuit of a bachelor’s degree, certificate degree, or any comparable undergraduate degree (Section 4).
All SUCs and LUCs must require students to pass entrance examination and other admission and retention requirements to enjoy the exemption (Section 4).
All Filipino students currently enrolled at effectivity or enrolling anytime thereafter in covered post-secondary TVET leading to nondegree certificate or diploma programs offered by state-run TVIs under TESDA are exempt from tuition and other school fees (Section 5).
The free tuition coverage includes units enrolled for SUC/LUC programs and tuition and other school fees for post-secondary TVET nondegree programs in state-run TVIs (Sections 4-5).

Free tuition opt-out and budget baseline

SUCs, LUCs, and state-run TVIs must create a mechanism allowing students with the financial capacity to voluntarily opt out of the tuition and other school fees subsidy or make a contribution (Sections 4-5).
SUCs and LUCs and state-run TVIs must report the tuition payments and contributions collected from opt-out/contributing students to CHED and/or TESDA, as applicable (Sections 4-5).
The amount needed to implement free tuition in SUCs and LUCs is determined by the respective governing boards based on the projected number of enrollees for each academic year and serves as the primary factor in computing the annual proposed budget of SUCs and, for LUCs, the CHED, as the baseline for the annual National Expenditure Program (NEP) of DBM (Section 4).
The amount needed to implement free tuition in state-run TVIs is determined by the governing board of TESDA based on the projected number of enrollees for each course, as the primary factor in TESDA’s annual proposed budget and as the baseline for the annual NEP of DBM (Section 5).

Ineligibility and exceptions to free education

Students are ineligible to avail of free tertiary education in SUCs and LUCs if they have already attained a bachelor's degree or comparable undergraduate degree from any HEI, whether public or private (Section 6(a)(1)).
Students are ineligible if they fail to comply with the admission and retention policies of the SUC or LUC (Section 6(a)(2)).
Students are ineligible if they fail to complete their bachelor’s degree or comparable undergraduate degree within a year after the period prescribed in their program (Section 6(a)(3)).
Students are ineligible in state-run TVIs if they have obtained a bachelor’s degree or received a technical-vocational certificate or diploma equivalent to at least National Certificate III and above (Section 6(b)(1)).
Students are ineligible in state-run TVIs if they fail in any course enrolled in during the program (Section 6(b)(2)).
Ineligible students must be charged tuition and other school fees determined by the boards of SUCs and LUCs, and in state-run TVIs, determined by TESDA (Section 6).

Tertiary Education Subsidy (TES)

A Tertiary Education Subsidy (TES) is established to support the cost of tertiary education or any part or portion thereof for all Filipino students who enroll in undergraduate-post-secondary programs of SUCs, LUCs, private HEIs, and all TVIs (Section 7).
The TES is administered by the UniFAST Board, and the amount needed is included in the budgets of CHED and TESDA (Section 7).
Prioritization is required in the following order: (a) students included in Listahanan 2.0, ranked according to estimated per capita household income, and (b) students not in Listahanan 2.0, ranked according to estimated per capita household income based on submitted documentation of proof of income, to be determined by the UniFAST Board (Section 7).
Prioritization by Listahanan 2.0 is not applied to Filipino students in cities and municipalities with no existing SUC or LUC campus (Section 7).
The TES may cover: (a) tuition and other school fees in private HEIs and private or LGU-operated TVIs equivalent to tuition and other school fees of the nearest SUC or state-run TVI in their respective areas; (b) an allowance for books, supplies, transportation, miscellaneous personal expenses, including a reasonable allowance for documented rental or purchase of a personal computer or laptop and other education-related expenses; (c) allowance for room and board; (d) for a student with a disability, an allowance for disability-related expenses including special services, personal assistance, transportation, equipment, and supplies reasonably incurred; and (e) for programs requiring professional license or certification, a one (1)-time cost of obtaining the first professional credentials or qualifications, including application fees, notarial fees, review classes fees, insurance premium fees, and documentation fees (Section 7).
The subsidy amount is based on UniFAST Board guidelines and the annual budgetary appropriation for this purpose (Section 7).

Student loan program for tertiary education

A Student Loan Program for tertiary education is established to support the cost of tertiary education or any part or portion thereof for all Filipino students who enroll in SUCs, LUCs, private HEIs, and TVET programs in all TVIs registered under TESDA (Section 8).
The loan program is administered by the UniFAST Board, and the amount needed is included in the budgets of CHED and TESDA (Section 8).
The UniFAST Board may offer short-term or long-term loans (Section 8).
Beneficiaries who availed of the loan during undergraduate studies may avail of another cycle for graduate studies, including medicine and law, after fully paying the previously availed loan (Section 8).
Beneficiaries who did not avail the loan during undergraduate studies may avail it for graduate studies, including medicine and law (Section 8).
Beneficiaries who did not avail the loan during undergraduate studies may avail it for review expenses for licensure examinations administered by the Professional Regulation Commission (PRC) (Section 8).
Repayment is effected by incorporating a portion of the loan amount or a percentage thereof in the employee’s monthly Social Security System (SSS) or Government Service Insurance System (GSIS) contribution, based on a reasonable schedule of repayment and interest rates formulated by the UniFAST Board (Section 8).
Payment commences once the beneficiary secures gainful employment with compensation, remuneration or earnings reaching the Compulsory Repayment Threshold (CRT) (Section 8).
The CRT is set and reviewed by the UniFAST Board and adjusted when necessary (Section 8).
The UniFAST Board, in consultation with relevant agencies, must formulate loan repayment guidelines for loan beneficiaries whose earnings are not covered by the GSIS or SSS programs, including OFW, emigrants, and self-employed persons and professionals (SEPs) (Section 8).

Requirements, quality standards, and reporting

SUCs and LUCs must establish a learner information system in accordance with CHED guidelines to facilitate tracking students and their performance (Section 9(a)).
SUCs and LUCs must submit relevant information as determined by CHED on school quality and performance (Section 9(b)).
SUCs and LUCs must formulate and submit to CHED and the Joint Congressional Oversight Committee a detailed SUC development plan updated every (10) years, for facilities and infrastructure development and expansion (Section 9(c)).
The CHED and TESDA must ensure quality standards in the review and endorsement of the budgets of SUCs, LUCs, and state-run TVIs, respectively (Section 10).
The detailed design of the TES and student loan programs must be subject to similar quality indicators defined by the UniFAST Board (Section 10).
SUCs, LUCs, and state-run TVIs must submit to CHED and TESDA, respectively, within five (5) days after the last day of late registration for each semester, a report listing the names of students eligible for free tuition and other school fees (Section 14).

Prohibited fee collection and criminal penalties

It is unlawful, upon effectivity of the Act, for any person, SUC, LUC, or state-run TVI to collect tuition and other school fees from qualified students (Section 11).
The prohibition does not apply to collections from students who voluntarily opt out of the tuition and other school fees subsidy or make a contribution to the school (Proviso to Section 11).
A violation of Section 11 is punishable by imprisonment of not less than six (6) months but not more than one (1) year, or a fine of not less than Twenty Thousand Pesos (P20,000.00) but not more than One hundred thousand pesos (100,000.00), or both, at the discretion of the court (Section 12).
If the violator is a university, college or any other judicial entity, the penalty is imposed on the president, treasury or the officer or person responsible for the violation (Section 12).

UniFAST expansion and oversight governance

The UniFAST Board must be expanded to include: the President of the Philippine Association of State Universities and Colleges as member; the Chairman of the Coordinating Council of Private Educational Associations as member; the President of the Association of Local Colleges and Universities as member; the President of GSIS as nonvoting member; and the President of SSS as nonvoting member (Section 13).
The UniFAST Board is authorized to establish an enhanced organizational structure, staff development and incentives, and other administrative measures needed for efficient discharge of tasks commensurate to its responsibilities (Section 13).
The UniFAST Board may tap eligible service providers subject to guidelines promulgated by the UniFAST Board (Section 13).
A Joint Congressional Oversight Committee is created to oversee, monitor, and evaluate implementation of the Act (Section 17).
The Oversight Committee consists of five (5) members each from the Senate and the House of Representatives (Section 17).
The committee includes the Chairperson of the Senate Committee on Education, Arts and Culture; Chairperson of the House Committee on Higher and Technical Education; Chairperson of the Senate Committee on Finance; Chairperson of the House Committee on Appropriations; and three (3) members each chosen from the membership of the Senate Committee on Education, Arts and Culture and the House Committee on Higher and Technical Education by the Senate President and House Speaker, respectively, with at least one (1) member each from the minority in the House of Representatives and in the Senate (Section 17).
Funding for committee expenses is taken from the appropriations of both the Senate and the House of Representatives (Section 17).

Implementing rules, appropriations, and funds

Within sixty (60) days from the Act’s effectivity, the UniFAST Board, in consultation with CHED, TESDA, and other relevant stakeholders, must promulgate implementing rules and regulations necessary for efficient and effective implementation (Section 18).
Failure of the UniFAST Board to promulgate implementing rules and regulations does not prevent or delay effectivity and implementation (Section 18).
Amounts necessary to carry out Sections 4, 5, 7 and 8 must be included in the annual General Appropriations Act (GAA) and appropriated under SUCs, CHED and TESDA in accordance with the Act (Section 15).
Up to three percent (3%) of the TES and student loan program for tertiary education may be used as administrative cost under UniFAST (Section 15).
The national government is authorized to prioritize funding this measure when negotiating and utilizing long-term deeply concessional official development assistance (ODA) (Section 16).
Grants, donations, collections, and other forms of assistance from local and foreign donors or public or private entities may be tapped and facilitated by UniFAST Board, subject to regular auditing guidelines and procedures (Section 16).
Acceptance of foreign-source donations is subject to existing government rules and regulations (Proviso to Section 16).

Transitory, separability, and repealing rules

If any part of the Act is declared unconstitutional or invalid, the remaining parts continue in full force and effect (Section 19).
All laws, executive orders, presidential decrees, implementing rules and regulations, or parts inconsistent with the Act are repealed or modified accordingly (Section 20).