FURTHER DEMOCRATIZING EDUCATIONAL OPPORTUNITIES PROMOTING THE "STUDY NOW PAY LATER PLAN" AND SPECIFYING VARIOUS SCHEMES FOR ITS IMPLEMENTATION.

• Number: Presidential Decree No. 932
• Sections: 10

Preamble

WHEREAS, it is of common knowledge that many deserving

students are unable to pursue their studies due to financial

difficulties;

WHEREAS, it is a declared national policy to democratize

access to education by providing opportunities to deserving citizens to

pursue higher education and training in the fields of study vital to the

development of the national economy;

WHEREAS, the limited

scope and coverage of existing state scholarship programs should be

supplemented by schemes whereby the state can expand its commitment of

financial assistance to deserving students;

WHEREAS, the

establishment of an educational assistance program more commonly known

as the "study now pay later plan" has been enunciated as a major measure

to promote such democratization of education opportunities.

NOW,

THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the

Philippines, by virtue of the powers vested in me by the Constitution,

hereby order and decree the following to be part of the law of the land.

Section 1

SECTION 1. This decree shall hereinafter be referred to as the

"Educational Assistance Act of 1976".

Section 2

SEC. 2. Under such

guidelines issued by the Educational Assistance Policy Council

hereinafter created, poor but deserving students may avail of

educational assistance from loanable funds as established below:

Educational Loan Funds (ELF)

A loan fund initially constituted at fifty million

(P50,000,000.00) pesos shall be earmarked, set up and ad ministered

independently at the SSS and GSIS which shall allocate twenty five

million (P25,000,000.00) pesos each from their investible funds

spread in a yearly contribution of five million (P5,000,000.00) pesos

starting calendar year 1976-77. This fund shall be used to service

the financial needs of eligible students regardless of whether or not

their parents or any of them are members of the SSS and GSIS. The

fund shall be in addition to the current educational loan program of

the SSS and the scholarship program of the GSIS.

The PNB, DEP and the Land Bank shall set aside five million

(P5,000,000.00) pesos each of their annual investment portfolio for

the purpose. These institutions shall submit to the Council the

procedural guidelines for their participation taking into account their

own charter objectives.

All private banking institutions and the Amanah Bank shall

also earmark a certain percentage of their investible funds for the

purpose.

The amount of loan that may be granted each student shall be

determined by the Council considering the number of years to complete

his studies and the amount needed for such expenditures as tuition and

other school fees, board and lodging, pocket money, books and supplies

and other miscellaneous expenses.

All loans under this scheme shall be covered by a guaranty

fund which is hereby created, under such conditions as may be imposed by

the Council.

Educational Loan Guarantee Fund (ELF)

The sum of one million (P1,000,000.00) pesos is hereby

authorized to be appropriated out of any funds in the National

Treasury not otherwise appropriated to constitute the initial

Educational Loan Guarantee Fund. Earnings guarantee charges and other

credits arising from the operations of this loan fund shall accrue to

the Educational Guarantee Fund.

The guarantee fund shall be administered by the Council.

Section 3

SEC. 3. The Council may accept donations legacies,

grants-in-aid and other contributions to form part of the loan and/or

Guarantee Funds.

Section 4

SEC. 4. The payment of all loans granted

to any student-borrowers under the schemes enumerated shall be made

immediately upon employment under such payroll check-off system as may

be established by the Council.

Section 5

SEC. 5. A policy making council to oversee this program

is hereby created to be composed of the Secretary of Education and

Culture as Chairman, the Secretary of Labor as Vice-Chairman, and the

Director-General of the NEDA, Secretary of Finance, Secretary of Social

Welfare, Budget Commissioner, Presidential Assistant on Youth and Sports

Development, Governor of the Central Bank, Administrator of the SSS and

General Manager of the GSIS or their alternates as members.

It shall be the function of the Council to:

Determine and issue the appropriate policies,

measures rules and regulations necessary to implement, maintain and

enhance this program.

Issue guidelines to govern existing and future

educational assistance programs of other government agencies and the

private sector.

Enlist the cooperation of schools and other relevant

institutions for the effective implementation and enhancement of the

program.

Perform such other duties as hereinafter be assigned to it by

the President of the Philippines.

Section 6

SEC. 6. An inter-agency secretariat, the composition and

function of which shall be determined by the Council, is hereinafter

created, to assist the Council in the implementation of this program.

The sum of two hundred thousand (P200,000.00) pesos is hereby

appropriated annually to be included in the budget of the Department of

Education and Culture to finance the Operations of the secretariat.

Section 7

SEC. 7. Qualification of Applicants

Any Filipino

citizen who graduates from a duly authorized secondary school, whether

public or private, desiring to pursue further studies may avail of

assistance under any of the schemes, the basic consideration being he is

poor but deserving. The Council shall determine such other

qualifications as it deems proper for the purpose.

Section 8

SEC. 8.

This Decree shall take effect immediately upon publication of its

implementing rules and regulations in two (2) newspapers of general

circulation in the Philippines.

Section 9

SEC. 9. The Student Loan

Fund Authority created under RA 6014 is hereby abolished. Likewise, all

acts or parts of acts inconsistent herewith are hereby repealed or

modified accordingly.

Done in the City of Manila, this 13th day of May, in the year

of Our Lord, Nineteen Hundred and Seventy-Six.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

JACOBO C. CLAVE

Presidential Executive Assistant