REPUBLIC ACT No.

10931
 AN ACT PROMOTING UNIVERSAL ACCESS TO QUALITY TERTIARY
EDUCATION BY PROVIDING FOR FREE TUITION AND OTHER SCHOOL
FEES IN STATE UNIVERSITIES AND COLLEGES, LOCAL UNIVERSITIES AND
COLLEGES AND STATE-RUN TECHNICAL-VOCATIONAL INSTITUTIONS,
ESTABLISHING THE TERTIARY EDUCATION SUBSIDY AND STUDENT LOAN
PROGRAM, STRENGTHENING THE UNIFIED STUDENT FINANCIAL
ASSISTANCE SYSTEM FOR TERTIARY EDUCATION, AND APPROPRIATING
FUND THEREFOR.
 BRIEF BACKGROUND

The Commission on Higher Education (CHED) formally launched the

implementing rules and regulations (IRR) of the free tuition law and
starting school year 2018 to 2019, the government will shoulder the
tuition and fees of students enrolled in 112 state universities and
colleges, 78 local universities and colleges, and technical-vocation
education and training programs registered under the Technical
Education and Skills Development Authority (TESDA).
The IRR of Republic Act No. 10931 or the Universal Access to Quality
Tertiary Education Act also includes provisions detailing how students
can avail of loans and other subsidies to help fund their tertiary
education.
Financially able students may either opt out of the free higher education
provision altogether. Likewise, students may avail of the free tuition law’s
benefits but also contribute a specific amount to their higher education
institution of choice.
About P40.919 Billion has been allotted for the first year of implementation
of the free tuition law and it is allocated on the following:
P16 billion - for free higher education;
P7 billion for free tech-voc education;
15.851 billion for TES;
P1 billion for student loan program;
P11 million for the Tertiary Education Tracking and Reporting System;
P11 million for the administrative cost of the Unified Student Financial
Assistance System for Tertiary Education (UniFAST) 2018.
SALIENT PROVISIONS OF THE ACT
Section 2. Declaration of Policy

 The State shall:

(a) Provide adequate funding and such other mechanisms to increase the
participation rate among all socioeconomic classes in tertiary education.
(b) Provide all Filipinos with equal opportunity to quality tertiary education
in both the private and public educational institutions.
(c) Give priority to students who are academically able and who come
from poor families.
(d) Ensure the optimized utilization of government resources in education.
(e) Provide adequate guidance and incentives in channelling young
Filipinos in their career choices and towards the proper development and
utilization of human resources.
(f) Recognize the complementary roles of public and private institutions in
tertiary educational system.
Section 3. Definition of Terms

 SALIENT TERMS:
(k) Qualified Student refers to any student who possesses all the
qualifications under Section 4 and 5 and none of the disqualifications
under Section 6 hereof.
(n) Student Loan Program for tertiary education refers to a loan
program established under Section 8 of this Act.
(o) Technical-Vocational Education and Training (TVET) refers to the
education process designed a post-secondary and lower tertiary
levels, officially recognized as non-degree programs aimed at
preparing technicians, paraprofessionals and other categories of
middle-level workers by providing them with a board range of general
education, theoretical, scientific and technological studies, and
related job skills training.
(p) Technical-Vocational Institutions (TVIs) refers to learning institutions
offering post-secondary (TVET;
(q) Tertiary Education refers to the stage of education following the
secondary cycle which covers post-secondary non-degree diploma,
TVET, and higher education programs, including graduate education;
(r) Tertiary Education Subsidy (TES) refers to a subsidy established under
Section 7 of this Act;
(u) Unified Student Financial Assistance System for Tertiary Education
(UniFAST) refers to the harmonized, state-run and administered system
of higher education and technical-vocational scholarships, grants-in-
aid, student loans, and other modalities of student financial assistance
program under Republic Act No. 10687.
Section 4. Free Higher Education in
SUCs and LUCs
 All Filipino students who are either currently enrolled at the time of
the effectivity of this Act, or shall enrol at any time thereafter, in
courses in pursuance of a bachelor's degree, certificate degree, o
any comparable undergraduate degree in other school fees for
units enrolled in. Provided, That they pass the entrance examination
and other admission and retention requirements of the SUCs and
LUCs. Provided further, That all SUCs and LUCs shall create a
mechanism to enable students with the financial capacity to pay
for their education in the SUC and LUC to voluntarily opt out of the
tuition and other school fees subsidy or make a contribution to the
school.
 SUCs and LUCs must report the tuition payments and contributions
collected from these students to the CHED. Provided, finally, That
the amount required to implement the free tuition and other school
fees in SUCs and LUCs shall be determined by the respective
governing boards of SUCs and LUCs based on the projected
number of enrolees for each academic years, which shall be the
primary factor in computing the annual proposed budget of SUCs
and, in the case of LUCs, the CHED for such purpose. This shall in turn
serve as the baseline during the preparation of the annual National
Expenditure Program (NEP) by the Department of Budget and
Management (DBM).
Section 5. Free TVET Technical-
Vocational Education and
Training in Post-Secondary TVIs
All Filipino students who are currently enrolled at the time of the
effectivity of this Act, or shall enrol at any time thereafter in any post-
secondary TVET leading to non-degree certificate or diploma
programs offered by any state-run TVI under the TESDA shall be exempt
from paying tuition and other school fees. Provided, That all state-run
TVIs shall create a mechanism to enable students with the financial
capacity to pay for their education in the TVI to voluntarily opt out of
the tuition and other school fees subsidy or make a contribution to the
TVI. TVIs must report the tuition payments and contributions collected
from these students.
 The amount required to implement the free tuition and other school
fees in state-run TVIs shall be determined by the governing board of
the TESDA based on the projected number of enrolees for each
course, which shall be primary factor in computing for the annual
proposed budget of the TESDA for such purpose. This shall in turn
serve as the baseline during the preparation of the annual NEP by
the DBM.
 Section 6. Exceptions to Free
Tertiary Education
 The following students are ineligible to avail of the free tertiary
education:
In SUCs and LUCs:
1. Students who have already attained a bachelor's degree or
comparable undergraduate degree from any HEI, whether public or
private.

2. (2) Students who fail to comply with the admission and retention
policies of the SUC or LUC.

3. (3) Students who fail to complete their bachelor's degree or

comparable undergraduate degree within a year after the period
prescribed in their program.
In State-Run TVIs:

(1) Students who have obtained a bachelor's degree, as well as those

who have received a certificate or diploma for a technical-vocational
course equivalent to at least National Certificate III and above:
(2) Students who fail in any course enrolled in during the course of the
program.

Students ineligible to avail of the free tertiary education shall be

charged the tuition and other school fees, as determined by the
respective boards of the SUCs and LUCs, and in the case of the state-
run TVIs, to be determined by the TESDA.
Section 7. TES (Tertiary Education
Subsidy) for Filipino Students
 To support the cost of tertiary education or any part or portion thereof,
a TES is hereby established for all Filipino students who shall enrol in
undergraduate-post-secondary programs of SUCs, LUCs private HEIs
and all TVIs. The TES shall be administered by the UniFAST Board and the
amount necessary to fund the TES shall be included in the budgets of
the CHED and the TESDA
 Provided, That prioritization shall be given to students in the following
order:
 (a) students who are part of households included in the Listahanan 2.0,
ranked according to the estimated per capita household income; and
 (b) students not part of the Listahanan 2.0, ranked according to
estimated per capita household income based on submitted
documentation of proof of income to be determined by the UniFAST
Board: Provided, further, That such prioritization shall not apply to Filipino
students in cities and municipalities with no existing SUC or LUC campus.
The TES may, among others, and to support the cost of tertiary
education or any part or portion thereof, cover the following:
(a) Tuition and other school fees in private HEIs, and private or LGU-
operated TVIs, which shall be equivalent to the tuition and other school
fees of the nearest SUC or state-run TVI in their respective areas.
(b) All allowance for books, supplies transportation and miscellaneous
personal expenses including a reasonable allowance for the
documented rental or purchase of a personal computer or laptop and
other education-related expenses.
(c) An allowance for room and board costs incurred by the student.
(d) For a student with a disability, an allowance for expenses related to
the student's disability, an allowance for expenses related to the
student's disability including special services, personal assistance,
transportation, equipment, and supplies that are reasonably incurred.
(e) For a student in a program requiring professional license or
certification, the one (1)-time cost of obtaining the first professional
credentials or qualifications, which may include the following:
application fees, notarial fees, review classes fees, insurance premium
fees and documentation fees. Provided, That the amount of subsidy
shall be based on the guidelines set forth by the UniFAST Board and on
the annual budgetary appropriation for this purpose.
Section 8. Student Loan Program for
Tertiary Education
 To support further the cost of tertiary education or any part or
portion thereof, a student loan program for tertiary education is
hereby likewise established for all Filipino students who shall enrol in
SUC, LUC, private HEI and TVET program in all TVIs registered under
the TESDA. The Loan program shall be administered by the UniFAST
Board and the amount necessary to fund the program shall be
included in the budgets of the CHED and the TESDA.
 Provided, That the UniFAST may offer short-term or long-term loans.
Provided, further, That those who availed of the loan during their
undergraduate degree may still avail of another cycle of student
loan for their pursuit of graduate studies, including medicine and
law after they have fully paid the previously availed loan.
 Provided, furthermore, That those who did not avail of the loan
program during their undergraduate studies may avail of it to pursue
graduate studies including medicine and law: Provided, finally, That
those who did not avail of the loan program during their
undergraduate studies may avail of the loan program for their
review expenses for licensure examinations administered by the
Professional Regulation Commission (PRC).
 Repayment shall be effected by the incorporating a portion of the
loan amount or a percentage thereof in the employee's monthly
Social Security System (SSS) or Government Service Insurance
System (GSIS) contribution, as the case may be based on a
reasonable schedule of repayment and interest rates. As may be
formulated by the UniFAST Board.
 Payment of the loan amount will commence once the beneficiary
secures any gainful employment with compensation, remuneration
or earnings that reaches the Compulsory Repayment Threshold
(CRT). For purposes of this Act, the CRT shall be set and reviewed by
the UniFAST Board, and adjusted when necessary.

 The UniFAST Board, in consultation with relevant agencies, shall

formulate loan payment guidelines for loan beneficiaries whose
earnings are not covered by the GSIS or the SSS programs, including
those of overseas Filipino workers (OFWs), emigrants, and self-
employed persons and professionals (SEPs).
 Section 11. Prohibited Act

 Upon effectivity of this Act, it shall be unlawful for any person, SUC
and state-run TVI to collect tuition and other school fees from
qualified students who voluntarily opt out of the tuition and other
school fees subsidy or make a contribution to the school.
 Section 12. Penalties

 A violation of the prohibited act under Section 11 of this Act shall be

meted a penalty of imprisonment of not less than six (6) months but
not more than one (1) year or a fine of not less than P20,000.00 but
not more than P100,000.00, or both, at the discretion of the court. In
case of a university, college or any other judicial entity, the penalty
shall be imposed on the president, treasurer or the officer or person
responsible for the violation.
 Section 15. Appropriations

 The amounts necessary to carry out the provisions of this Act,

specifically Section 4, 5, 7 and 8 shall be included in the annual
General Appropriations Act (GAA) and shall be appropriated under
SUCs, CHED and TESDA in accordance with the provisions of this Act:
Provided, That an amount equivalent to not more than three per
cent (3%) of the TES and student loan program for tertiary education
provided under this Act may be used as administrative cost under
the UniFAST Unified Student Financial Assistance System for Tertiary
Education.
Section 16. Other Sources of Funds

The national government is hereby authorized to prioritize funding this

measure in negotiating and utilizing loan-term deeply concessional
Official Development Assistance (ODA).
Other sources of funds such as grants, donations, collections, and other
forms of assistance from local and foreign donors or other public or
private entities, and other private domestic and international sources
may be tapped and facilitated by the Unified Student Financial
Assistance System for Tertiary Education UniFAST Board to support the
programs under this Act, subject to the regular auditing guidelines and
procedures.
Provided, That in case of donations from foreign sources, acceptance
thereof shall be subject to existing government rules and regulations.
Section 18. Implementing Rules and
Regulations
Thank You!