WHEREAS, it
is of common knowledge that many deserving students are unable to
pursue their studies due to financial difficulties;chanroblesvirtualawlibrary
WHEREAS, 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; chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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 educational
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:cralaw:red
Section 1. This decree shall hereinafter be referred
to as the "Educational Assistance Act of 1976".
Section 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:cralaw:red
1. Educational Loan Funds (ELF) —
(a) A loan fund initially constituted at fifty
million (P50,000,000.00) pesos shall be earmarked, set up and
administered 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.
(b) The PNB, DBP 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.
(c) All private banking institutions and Amanah Bank
shall also earmark a certain percentage of their investible funds for
the purpose.
(d) 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.
(e) All loans under this schemes shall be covered by
a guaranty funds which is hereby created, under such conditions as may
be imposed by the Council.
2. Educational Loan Guarantee Funds (ELGF) —
(a) The sum of one million (P1,000,000.00) pesos in
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.
(b) The guarantee fund shall be administered by the
Council.
Section 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. The payment of all loans granted to any
student-borrowers under the schemes enumerated shall be made
immediately upon employment under such payroll checkoff-system as may
be established by the Council. chanroblesvirtualawlibrary
Section 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 alternatives as
members.
It shall be the function of the Council to:
(a) Determine and issue the appropriate policies,
measures, rules and regulations necessary to implement, maintain and
enhance this program.
(b) Issue guidelines to govern existing and future
educational assistance programs of other government agencies and the
private sector.
(c) Enlist the cooperation of schools and other
relevant institutions for the effective implementation and enhancement
and enhancement of the program.
(d) Perform such other duties as hereinafter be
assigned to it by the President of the Philippines.
Section 6. An inter-agency secretariat, the
composition and function of which shall be determined by the Council,
is hereafter 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. Qualification of Applicants. —
Any Filipino citizen who graduates from a duly authorized secondary
school, whether public and 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. 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. The Student Loan 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.
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