AN ACT PROVIDING FOR A COMPREHENSIVE AND UNIFIED STUDENT FINANCIAL ASSISTANCE SYSTEM FOR TERTIARY EDUCATION (UNIFAST)

Case Overview and Summary

Summary of the Unified Student Financial Assistance System for Tertiary Education (UniFAST) Act

Declaration of Policy (Section 2)
- The State shall provide adequate funding and mechanisms to increase participation in tertiary education, especially for poor but academically able and motivated students.
- Existing publicly-funded national government programs for scholarships, grants-in-aid, and student loans for tertiary education are unified and harmonized.

Objectives (Section 3)
- Allocate and utilize government resources for students through effective beneficiary-targeting.
- Ensure consistency, continuity, and efficient coordination of student financial assistance policies and programs.
- Ensure regional equity in the distribution of student financial assistance slots.
- Produce a pool of highly qualified graduates and technical experts through merit and talent-based scholarships.
- Facilitate access to quality education through grants-in-aid for marginalized sectors.
- Assist students with liquidity issues through student loans.

Definition of Terms (Section 4)
- Defines key terms such as "beneficiary", "cost of tertiary education", "educational expenses", "grantee", "grant-in-aid", "higher education", "higher education institution", "other school fees", "qualifying examination system", "rationalized access", "registry of programs and institutions", "scholar", "scholarship", "special purpose education assistance", "state universities and colleges", "student-borrower", "student financial assistance program", "student loan", "technical-vocational education and training", "technical-vocational institutes", "tertiary education", and "unified student financial assistance system for tertiary education".

Scope and Coverage (Section 5)
- UniFAST consists of all existing modalities of student financial assistance programs (StuFAPs) for tertiary education, including scholarships, grants-in-aid, student loans, and government programs in partnership with other stakeholders.
- UniFAST harmonizes, reforms, strengthens, expands, rationalizes, and re-focuses all legislated or ongoing StuFAPs of the government.
- Existing programs under other agencies with specific and targeted beneficiaries shall continue under their respective agencies but must comply with UniFAST policies.

Modalities of StuFAPs

Scholarship (Section 6)
- A unified, improved, and expanded government-funded scholarship program shall be instituted.
- The Board shall formulate policies and mechanisms for identifying beneficiaries based on objective indicators, including students from families benefiting from poverty alleviation programs.
- Beneficiaries under the Iskolar ng Bayan Act shall be prioritized.
- The financial amount for scholarships shall be determined by the Board, considering the actual cost of programs in top public and private higher education institutions (HEIs), but shall not exceed the actual cost of tertiary education.

Grant-in-Aid (Section 7)
- Grants-in-aid shall be made available to students belonging to poor families and marginalized sectors.
- The Board shall formulate policies and mechanisms for identifying grantees based on objective indicators, including students from families benefiting from poverty alleviation programs.
- The financial amount for grants-in-aid shall be determined by the Board, considering the actual cost of programs in top public and private HEIs.

National Student Loan Program (Section 8)
- The Board shall pursue a long-term plan for a self-sustaining National Student Loan Program (NSLP) to provide qualified students with short-term and long-term financial assistance for tertiary education.
- The Board shall ensure the professionalization of the NSLP's management, establish an appropriate organizational setup, and institute accountability mechanisms for effective loan repayment collection.
- The Board shall explore processes to minimize the risk of non-repayment of loans and collection costs, and encourage private sector participation.
- The GSIS and SSS shall study the feasibility of an automatic system of salary deduction for student loan repayments.
- The top ten graduates of all public high schools shall be given priority in the grant of student loans, which shall be repaid after graduation or leaving the institution.
- The educational loan shall be sourced from 5% of the total loanable portfolio of the Development Bank of the Philippines.

Other Modalities of StuFAPs (Section 9)
- The Board may develop other modalities of StuFAPs.
- The Board, implementing agencies, SUCs, and public TVIs may promulgate and develop other forms of StuFAPs, such as private scholarship or sponsorship programs, and student or graduate assistance programs, in accordance with the standards and guidelines set by the Board.

Eligibility of Applicants and Terms of Availment

Minimum Qualifications of Applicants (Section 10)
- Filipino citizen (exemptions may be granted for foreign students based on reciprocal programs).
- High school graduate or equivalent from authorized institutions.
- Good moral character with no criminal record (may be waived for programs targeting children in conflict with the law or those undergoing rehabilitation).
- Admitted to an HEI or TVI included in the Registry of Programs and Institutions.
- For TVET programs, pass the TESDA screening/assessment procedure, trade test, or skills competency evaluation.
- Declare if already a beneficiary of any other student financial assistance.
- For scholarship applicants, obtain at least the required score in the Qualifying Examination System for Scoring Students.
- Possess other qualifications as prescribed by the Board.

Disqualifications and Limitations (Section 11)
- The right to avail of StuFAPs shall not apply if the student fails to comply with requirements for good academic standing and other conditions imposed by the Board.
- The Board shall consider supervening circumstances that may have affected the student's studies.
- The Board shall not unduly deprive eligible applicants of student financial assistance but may direct them to enroll in priority courses based on national development plans and labor force demands.

Terms of Availment of StuFAPs (Section 12)
- The Board and/or implementing agency may impose reasonable terms and conditions prior to granting scholarships, student loans, or other modalities of StuFAP.

Sanctions (Section 13)
- The Board and/or implementing agency may impose reasonable sanctions on beneficiaries who have violated provisions of their contract.

The UniFAST Board

Creation of a UniFAST Board (Section 14)
- A UniFAST Board is created, attached to the Commission on Higher Education (CHED), composed of the CHED Chairperson (ex officio Chairperson), the Secretary of the Department of Science and Technology (ex officio Co-Chairperson), the TESDA Director-General (ex officio Co-Chairperson), the Secretary of the Department of Education (ex officio member), a representative from the Department of Labor and Employment (ex officio member), a representative from the National Economic and Development Authority (ex officio member), and a representative from the National Youth Commission (ex officio member).

Powers and Functions of the Board (Section 15)
- Formulate and approve policies and strategies for UniFAST, and review existing policies.
- Coordinate with implementing agencies in formulating guidelines for UniFAST.
- Provide necessary support to implementing agencies.
- Prepare, approve, and submit its own budget proposal, including vetting and integrating requests for public funding of tertiary education StuFAPs.
- Promulgate minimum guidelines, rules, and regulations for determining qualified beneficiaries.
- Provide general guidelines for drawing up contracts with beneficiaries, including service clauses or cost recovery stipulations.
- Monitor, assess, and evaluate StuFAPs and projects to determine their adoption, continuation, or termination.
- Adopt a Qualifying Examination System for Scoring Students for merit and talent-based StuFAPs and determine eligibility for grants-in-aid and other modalities.
- Promote a supportive policy environment for private sector participation in StuFAPs.
- Establish and maintain a public database on StuFAPs and accredited tertiary education programs and institutions.
- Disseminate information on the database to encourage its use and informed decision-making by beneficiaries.
- Design a program for generating funds for UniFAST.
- Facilitate and tap donations, legacies, gifts, and other contributions, which shall be exempt from donor's tax and allowable deductions for income tax purposes.
- Appoint members of the UniFAST Secretariat and legal officers.
- Set up and maintain an official registry of quality-assured academic and research programs and tertiary education institutions.
- Approve appropriate honorarium and per diem for Board members.
- Develop an efficient tracking system of student-borrowers, disbursement and collection of loan payments, including entering into agreements with relevant agencies and institutions.
- Perform other powers and functions necessary for the effective implementation of the Act.

Meetings (Section 16)
- The Board shall hold 12 regular monthly meetings in a year, which may be reduced to at least once every quarter after 4 years of implementation.
- The Chairperson may call special meetings with at least 3 working days' notice.
- In the absence of the Chairperson, the Co-Chairpersons shall preside over meetings on a rotation basis.
- At least one meeting per quarter must be attended by the Chairperson and Co-Chairpersons and shall review the performance of UniFAST based on various indicators.

Quorum (Section 17)
- The attendance of a simple majority of Board members is necessary for a quorum.

Creation of a UniFAST Secretariat (Section 18)
- A Secretariat headed by an Executive Director is created to support the Board.
- The Board shall provide for the institutional setup, qualifications, and compensation of Secretariat employees.
- The Secretariat shall provide technical and administrative support, review and evaluate programs and plans, maintain a repository of data and information on StuFAPs, and recommend contracting out implementation activities.

The Executive Director (Section 19)
- The Executive Director shall be appointed by the Board with the rank of an Assistant Secretary.
- The Executive Director shall have at least 7 years of managerial experience, hold at least a Master's degree, and be a Career Executive Service eligible.
- The Executive Director shall serve as the primary coordinator of StuFAPs, manage relationships with partner agencies, exercise leadership and supervisory functions over the Secretariat, ensure provision of accurate and timely inputs to the Board, ensure proper dissemination and implementation of Board decisions, and submit an annual report on operations, status of programs, and financial conditions.

Financial Management, Reporting, and Performance Evaluation

Financial Management and Accountability (Section 20)
- All public funds allocated to government StuFAPs for tertiary education shall be managed according to standard government accounting and auditing rules and regulations.
- Specialized processes and procedures shall be developed to enhance transparency and accountability suitable to the program or project.

Accounting and Reporting of UniFAST StuFAP Funds (Section 21)
- A separate book of accounts shall be kept by each implementing agency for the UniFAST StuFAP Funds, following standard government rules and regulations for accounting.
- Implementing agencies may adopt additional measures to ensure the safety of funds, particularly in authorizing payments and processing disbursements.
- A mid-year and annual report shall be prepared by all implementing agencies, consisting of a financial statement and a report of operations, and submitted to Congress and the Department of Budget and Management.
- The list of beneficiaries and the amount of financial assistance received shall be made available upon request.

Responsibility of National Government Agencies Implementing StuFAPs (Section 22)
- Agencies and instrumentalities implementing StuFAPs are required to submit reports, make their selection process transparent to the public, and comply with requirements imposed by the Board to ensure alignment with the national policy framework on student financial assistance.

Performance Monitoring and Impact Assessment (Section 23)
- The UniFAST shall be rigorously evaluated by the Board in terms of its impact on desired results, which shall be monitored regularly.
- Impact evaluation shall be measured against education outcomes, economic indicators, and indicators for contributions to community service and public good.
- Performance and progress shall be measured with regard to the number of students covered, type of study program, level of HEI enrolled in, and initial economic status.
- Tracer studies and survey data for experimental and quasi-experimental analyses shall be undertaken to produce credible impact evaluation studies.
- Major programs of the Board are to be evaluated within 5 years from the date of implementation.

Congressional Oversight Committee (Section 24)
- A Congressional Oversight Committee on UniFAST is created, composed of 5 members each from the Senate Committee on Education, Arts and Culture and the House of Representatives Committee on Higher and Technical Education.
- The Oversight Committee shall oversee the implementation of the Act, including inquiring into the book of accounts of the Board.
- The Board shall submit financial statements, policy statements, issuances, and other documents and information to the Oversight Committee on a periodic basis.

Appropriations

Appropriations (Section 25)
- The amount necessary to carry out the provisions of the Act, specifically for the creation of the Board and Secretariat and the initial implementation, shall be charged against the current year's appropriation of the CHED.
- The budget for the implementation of existing StuFAPs and any new modality shall be charged against the budget of the implementing agencies.
- Thereafter, the necessary amount for continued implementation shall be included in the Annual General Appropriations Act.

Other Sources of Funds (Section 26)
- Other sources of funds such as grants, donations, and other forms of assistance from local and foreign donor agencies, public or private entities, and other private domestic and international sources may be tapped by the Board, subject to regular auditing guidelines and procedures.
- Donations from foreign sources shall be subject to existing government rules and regulations.
- Donations and contributions given to specific agencies for StuFAPs shall be retained by the identified agency for that specific purpose, in accordance with government auditing rules and regulations.
- Cost-sharing or counter-parting schemes among national government and local government units shall be encouraged to support the implementation of UniFAST.

Implementation

Implementing Rules and Regulations (Section 27)
- Within 30 days from the effectivity of the Act, the Board shall constitute itself, in consultation with relevant stakeholders in tertiary education, and promulgate the Implementing Rules and Regulations necessary for proper implementation within 60 days from the constitution of the Board.

Miscellaneous Provisions

Separability Clause (Section 28)
- If any provision of the Act is declared unconstitutional or invalid, parts or provisions not affected shall continue to be in full force and effect.

Non-Impairment Clause (Section 29)
- Nothing in the Act shall be construed as to diminish, impair, or repeal rights granted to disadvantaged, marginalized, or specific sectors under existing laws.

Repealing Clause (Section 30)
- All laws, executive orders, presidential decrees, implementing rules and regulations inconsistent with the Act are repealed or modified accordingly, including the provisions of Republic Act No. 8545 on Tertiary Education.

Effectivity (Section 31)
- The Act shall take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.