REPUBLIC ACT NO. 6014 - AN
ACT CREATING THE STUDENTS' LOAN FUND AUTHORITY, PRESCRIBING ITS POWERS,
FUNCTIONS AND DUTIES, AND AUTHORIZING THE APPROPRIATION OF FUNDS
THEREFOR
Section 1. Declaration of Policy. — It is hereby declared a
national policy to give equal opportunity to all persons who desire to
pursue higher education by extending financial assistance and promoting
scholarship grants-in-aid to deserving students to the end that no
person shall be deprived of the benefits of education on account of
poverty.
Sec. 2. Students' Loan Fund Authority. — To carry
out such declared policy, there is hereby created a Students' Loan Fund
Authority under the Department of Education, hereinafter referred to as
the Authority, which shall be organized within sixty days after the
approval of this Act. The Authority shall have its principal place of
business in the City of Manila.
Sec. 3. Definition of Terms. — For purposes of
this Act, the following terms shall mean:
(1) The Authority shall refer to the Students' Loan
Fund Authority.
(2) Scholarship grants-in-aid refer to such amounts
loaned to student recipients to cover matriculation and other school
fees;
(3) Education loans refer to such amounts loaned to
student recipients to cover expenses for books, subsistence, board and
lodging.
Sec. 4. Powers, Functions and Duties of the
Authority. — The Authority shall have the following powers, functions
and duties:
(a) To establish and adopt a program of generating
funds for educational loans and scholarship grants-in-aid to students
who qualify under the provisions of this Act;
(b) To encourage and coordinate the grant of
scholarship grants-in-aid to deserving students by public and private
agencies;
(c) To plan and implement a program of financing the
education of needy and deserving students: provided, however, that the
distribution of loans and scholarship grants-in-aid to the various
cities and provinces shall be in proportion to their population:
provided, further, that support for student recipients shall be given
until they finish their course of study: provided, finally, that
student debtors shall not be entitled to financial aid for subject they
repeat on account of failure or unjustified drop-out,
(d) To establish a priority of courses based on the
manpower needs of the country and accordingly approve applications for
assistance on the basis of such priorities;
(e) To prepare and administer all the necessary
psychological aptitude, intelligence quotient and all other pedagogical
tests necessary for the proper screening of the student recipients
under this Act;
(f) To develop a system of collecting payments of
loans granted to students under this Act: provided, however, that the
annual amortization of such loans shall not exceed fifteen per cent of
the annual income of the grantee;
(g) To publicize and make available all information
regarding the functions and work of the Authority;
(h) To conduct studies and researches on the extent
poverty deprives students of pursuing college education or other forms
of higher education after graduation from secondary schools and to
recommend appropriate solution for legislative action;
(i) To establish a center of information which will
publicize scholarship opportunities available to Filipino students in
colleges and universities here and abroad;
(j) To solicit and receive donations, legacies,
grants-in-aid and other forms of contribution, whether in cash or in
property from both public and private sources, here and abroad, which
shall accrue to the special fund created in this Act, and to receive
and utilize the services and assistance of experts: provided, that such
donations, legacies, grants-in-aid and contributions shall be exempt
from taxation and shall be allowable deductions for income tax
purposes;
(k) To avail of the personnel and office facilities
of the Department of Education, universities, colleges and schools in
coordination with the proper officers for the efficient implementation
of the provisions of this Act;
(l) To issue rules and regulations necessary for the
proper implementation of this Act; and
(m) To exercise such other powers and perform such
other functions and duties as will promote and expand scholarship
grants-in-aid and educational opportunities for needy and deserving
students to carry into effect the provisions of this Act.
Sec. 5. Executive Board. — The powers of the
Authority shall be exercised and its functions and duties performed by
an Executive Board which shall be composed of twelve members, with the
Secretary of Education as Chairman, or in his absence, the
Undersecretary of Education for policy, who shall all be appointed by
the President of the Philippines with the consent of the Commission on
Appointments. The other members are as follows:
(a) A representative from state universities and
colleges who shall be the Vice-Chairman;
(b) A representative of sectarian universities and
colleges, who shall be selected from the list of four nominees by the
Catholic Educational Association of the Philippines and Association of
Christian Schools and Colleges;
(c) A representative of non-sectarian private
universities and colleges, who shall be selected from the list of four
nominees by the Philippine Association of Colleges and Universities;
(d) A representative from the Philippine Association
for Guidance and Personnel;
(e) A representative from the Commission on National
Integration;
(f) A representative from the Department of Labor;
(g) Two representatives from government financing
institutions;
(h) Two representatives from the private sector, one
representing insurance and banking, and the other representing other
business; and
(i) One representative from the student sector:
provided, however, that the appointee shall not be more than 30 years
of age; Provided, finally, that the student representative shall hold
office for a term of only one year.
Sec. 6. Term of Office. — The members of the Board
shall hold office for a term of four years from the date of their
respective appointments and may not be removed except for cause:
provided, however, that in the case of the representatives from the
sectarian or non-sectarian universities and colleges, a request by the
organization involved to change its representative shall be deemed
sufficient cause for removal.n case of vacancy in the Board due to
death, resignation, removal or incapacity of a member thereof, the
President may appoint a successor who shall serve for the unexpired
portion of the term of the member he replaced.
Sec. 7. Meetings of the Board. — The Board shall
meet at least once a month or as often as may be necessary to carry
into effect the purposes of this Act. The Board shall be convened by
the Chairman or upon the written request of at least three members
thereof.
Sec. 8. Compensation of Members. — The Chairman
and Members of the Board shall each receive a per diem of fifty pesos
for each day of meeting personally and actually attended by them, but
which in no case shall aggregate more than two hundred pesos a month.
Sec. 9. Commissioners of the Authority. — There
shall be in the Authority a Commissioner who shall be assisted in the
exercise of his powers and the performance of his functions and duties,
by one Deputy Commissioner. The Commissioner and the Deputy
Commissioner shall be appointed by the Executive Board with the
approval of the President of the Philippines. The Commissioners shall
have at least seven years experience in school or educational
administration and a holder of at least a Master's Degree or its
equivalent conferred by a reputable educational institution.
The Commissioner shall receive an annual salary equal to the salary of
an undersecretary of an executive department, and the Deputy
Commissioner an annual salary equal to that of bureau director.
The Commissioner and Deputy Commissioner shall serve for a term of nine
years from the date of their respective appointments and they shall not
be removed except for cause.n case of vacancy in the position of the
Commissioner or Deputy Commissioner, the Board may appoint a successor
who shall serve for the unexpired portion of the term of his
predecessor.
SECTION 10. Powers and Duties of the Commissioner. —
The Commissioner shall be the Secretary of the Board and the executive
officer of the Authority. He shall have the following powers and
duties;
(a) To execute and implement the policies, rules and
regulations established, adopted and promulgated by the Board;
(b) To organize the administrative machinery of the
Authority and, with the approval of the Board, fix the number and
salary and appoint the personnel of the Authority; and
(c) To perform such other functions and duties as the
Board may direct to accomplish the purposes of this Act.
SECTION 11. Students' Loan Fund. — There is hereby
created a special fund to be known as the Students' Loan Fund which
shall be administered by the Executive Board of the Authority. The
Students' Loan Fund shall be used to finance education loans and
scholarship grants-in-aid for students who are qualified under this
Act. The Students' Loan Fund shall be constituted out of the proceeds
of bonds which the Authority may issue, subject to the approval of the
President of the Philippines, and of donations, legacies, grants-in-aid
and other forms of contributions received by the Authority for the
purposes and such amounts as may be appropriated by law for the same
purpose.
SECTION 12. Bond Issues. — The Authority is hereby
authorized to issue bonds in an amount not exceeding fifty million
pesos which shall accrue to the Students' Loan Fund and bear interest
at six per cent per annum. The Authority shall, in consultation with
the Monetary Board, prescribe the form, denomination, maturity which
shall not extend beyond a period of fifteen years, negotiability,
convertibility, call and redemption features and such other terms and
conditions of issuance, servicing, redemption and payment of such
bonds. The bonds issued under this Act shall be guaranteed by the
Republic of the Philippines and shall be exempt from taxation,
attachment or seizure and shall be acceptable as collateral for loans
in all government financing corporations up to sixty per cent of its
face value.
A sinking fund shall be established for the payment of the bonds issued
under this Act in such manner that the total contributions thereto,
accrued at such rate of interest as may be determined, shall be
sufficient to redeem at maturity the bonds issued.
SECTION 13. Qualifications of Applicants. — Any
Filipino citizen who graduates from a duly recognized high school who,
though a minor, shall be vested with capacity to act for purposes of
contracting a loan under this Act, may apply for education loans and
scholarship grants-in-aid from the Authority under the following
conditions:
(a) He must have obtained a general average of at
least eighty per cent throughout the entire high school course;
(b) He must present a certificate signed by the
principal of the high school from which he was graduated that he is
qualified to pursue college education or any other form of higher
education: provided, however, that the principal's refusal to
issue a certification may be referred to the appropriate office of the
Department of Education for final decision;
(c) He must present an affidavit executed by one of
his parents, or in default thereof, by his legal guardian, that his
parents or guardian has an annual income of less than two thousand five
hundred pesos and does not own real estate in excess of P5,000.00 in
assessed value, which affidavit shall be subscribed and sworn to before
the city or municipal treasurer of the applicant's residence;
(d) He must submit a written projection and plan for
his studies which will include the length of time necessary to finish
his course, the total expenses that will be incurred, his reasons for
wanting to take said course, and a brief statement as to what he plans
to do after college.
(e) He must pass the various examinations prepared
and administered by the Authority.
SECTION 14. Payment of Loan. — Any loan granted under
this Act shall be paid by the student-debtor after he has finished the
course or profession for which the proceeds of the loan was expended,
and after a period of one year from the time he has acquired an
employment: provided, however, that interest at the rate of 6% per
annum shall accrue on the total amount or the balance thereof, borrowed
by the student-debtor upon employment.
SECTION 15. Payment of School and Other Fees. —
Scholarship grants-in-aid to students shall be paid directly to the
educational institution where such students are enrolled. Payments may
be in the form of cash or bonds issued by the Authority under this Act.
Education loans shall be made payable to the book store or boarding
house concerned. Payment may be made in the form of cash or bonds
issued by the Authority: provided, however, that that portion of the
education loan for the subsistence allowance shall be payable in cash
directly to the student-recipient.
SECTION 16. Appropriation. — There is hereby
appropriated the sum of two hundred thousand pesos out of any funds in
the national treasury not otherwise appropriated, which shall form part
of the Students' Loan Fund to be used to finance loans to students who
are qualified under this Act.
There is hereby further appropriated the sum of one hundred thousand
pesos out of any funds in the National Treasury not otherwise
appropriated, for the operating expenses of the Students' Loan
Authority during the fiscal year ending June nineteen hundred seventy.
Thereafter, the necessary sums to provide funds for its operating
expenses and for at least ten thousand educational loans shall be
included in the annual General Appropriations Acts.
SECTION 17. Repealing Clause. — All Acts, parts of
Acts and executive orders inconsistent with the provisions of this Act
are hereby repealed or modified accordingly.
SECTION 18. Effectivity. — This Act shall take effect
upon its approval.
Approved: August 4, 1969
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