Further Democratizing Educational Opportunities Promoting The "Study Now Pay Later Plan" And Specifying Various Schemes For Its Implementation

Case Overview and Summary

Summary of Presidential Decree No. 932 - Educational Assistance Act of 1976

Democratizing Educational Opportunities and Promoting the "Study Now Pay Later Plan"

- Establishes the "Study Now Pay Later Plan" to provide financial assistance to deserving students (Section 1)
- Defines key terms like "Educational Loan Fund", "Educational Loan Guarantee Fund", "Priority Course", "Grantee", etc. (Rule I)

Coverage:
- Covers Filipino citizens pursuing post-secondary courses in Philippine schools, both public and private (Rule II, Section 1)
- Covers students enrolled in priority courses specified by the Council (Rule II, Section 2)

Educational Loan Funds (Section 2.1):
- Initial fund of ₱50 million, with ₱25 million each from SSS and GSIS investible funds (Section 2.1(a))
- PNB, DBP, and Land Bank to set aside ₱5 million each annually (Section 2.1(b))
- Private banks and Amanah Bank to earmark a percentage of investible funds (Section 2.1(c))
- Loan amount determined by the Council based on course duration and expenses (Section 2.1(d))
- Loans covered by a Guarantee Fund created under the Council (Section 2.1(e))

Educational Loan Guarantee Fund (Section 2.2):
- Initial fund of ₱1 million appropriated from the National Treasury (Section 2.2(a))
- Administered by the Council (Section 2.2(b))

Loan Repayment (Section 4):
- Loans to be repaid immediately upon employment after graduation through a payroll checkoff system

Policy Council (Section 5):
- Chaired by the Secretary of Education and Culture, with members from various government agencies
- Functions include issuing policies, guidelines, and enhancing the program (Section 5(a)-(d))

Secretariat (Section 6):
- Inter-agency body to assist the Council in implementation
- Annual budget of ₱200,000 from the Department of Education and Culture

Applicant Qualifications (Section 7, Rule IV):
- Filipino citizen, resident of the Philippines
- Single and not over 25 years old
- Enrolling in a priority course listed by the Council (Rule V)
- In good health and moral character
- Deserving, with specific academic and income requirements
- Only one grantee per family per school year

Priority Courses (Rule V):
- Degree programs like BS Agriculture, BS Engineering, BS Sciences, AB Economics, etc.
- Non-degree programs like Wood Pattern Making, Auto Mechanics, Electronics, etc.

Loan Application Process (Rule VI):
- Standard application form to be submitted 15 days before enrollment
- Supporting documents like income proof, medical certificate, academic records, etc.
- Processing Units in Regional and Division Offices to process applications

Loan Schedule and Options (Rule VII):
- Maximum annual loan of ₱4,000 for tuition, books, board and lodging, etc.
- Options to take full loan, school expenses only, living expenses only, or specific items

Loan Conditions (Rule VIII):
- Assistance continues until course completion, subject to conditions
- Minimum grade requirements to qualify for continued assistance
- Loan agreement to be signed by applicant
- Assistance terminated if receiving other scholarships

Loan Repayment (Rule IX):
- Repayment immediately upon employment after graduation
- Liable for repayment with interest in case of non-completion or non-employment

Guarantee Loan Fund Availment (Rule X):
- Lending institutions covered by the Guarantee Loan Fund
- Council to issue guidelines on availing the Guarantee Fund

Secretariat (Rule XI):
- Composition, meetings, and functions of the Secretariat
- Staffed and funded by the Department of Education and Culture

Placement (Rule XII):
- Bureau of Employment Services to assist in job placement of graduates
- Coordination with government agencies for job openings
- Preference for government employment for graduates

Transitory Provisions (Rule XIII):
- Initial loan funds for school year 1976-1977 from GSIS, SSS, and other institutions
- Later enrollment allowed for first semester of 1976-1977, but not beyond June 30, 1976