Presidential Decree No. 932 (PD 932) — Further Democratizing Educational Opportunities Promoting the "Study Now Pay Later Plan" and Specifying Various Schemes for Its Implementation.
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. This decree shall hereinafter be referred to as the
"Educational Assistance Act of 1976".
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.
SEC. 3. The Council may accept donations legacies,
grants-in-aid and other contributions to form part of the loan and/or
Guarantee Funds.
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.
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.
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.
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.
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.
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
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
