Amending P.D. No. 932 (Educational Assistance Act of 1976)

May 2, 1978

PRESIDENTIAL DECREE NO. 1371

AMENDING CERTAIN SECTIONS OF PRESIDENTIAL DECREE NO. 932 OTHERWISE KNOWN AS THE "EDUCATIONAL ASSISTANCE ACT OF 1976"

WHEREAS, under Presidential Decree No. 932 the Government has further democratized educational opportunities promoting the "Study Now Pay Later Plan" and specifying various schemes for its implementation; and cdt

WHEREAS, with the expanded coverage of the government's educational program to provide the youth all available educational opportunities, it has become necessary and expedient to increase the yearly contribution, and such other benefits for the purpose of accelerating the educational assistance program; casia

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 amendment of Presidential Decree No. 932, as follows:

 Section 2, par. 1(s) and (b), is hereby amended to read as follows:

"1. Educational Loan Funds (ELF)

"(a) The Government Service Insurance System (GSIS) and the Social Security System (SSS) shall set aside Eight Million Pesos (P8,000,000.00) each annually as their yearly contribution to the Educational Loan Fund from which qualified students may avail educational assistance loans. This fund shall be used to service the financial needs of eligible students regardless of whether or not their parents of any of them are members of SSS or GSIS.

"(b) The Philippine National Bank, Development Bank of the Philippines, and the Land Bank of the Philippines shall set aside Eight Million Pesos (P8,000,000.00) each annually as their yearly contributions to the Educational Loan Fund. These institutions shall submit to the Council the procedural guidelines for their participation.

 Section 2, par. 2(a) of the same Decree is hereby amended to read as follows:

"2. Educational Loan Guarantee Fund (ELGF)

"(a) The sum of Five Million Pesos (P5,000,000.00) is hereby appropriated from the funds of the National Treasury to constitute the initial Educational Loan Guarantee Fund. For this purpose the Budget Commissioner shall immediately release the funds herein appropriated to the Department of Education and Culture. Earnings, guarantee charges, and other credits arising from the operations of this Loan fund shall accrue to the Educational Loan Guarantee Fund."

 Section 6 of the same Decree is hereby amended to read as follows:

"Section 6. An inter-agency secretariat, the composition and functions of which shall be determined by the Council is hereby created to assist the council in the implementation of this program. aisa dc

"A sum of Six Hundred Thousand Pesos (P600,000.00) is hereby appropriated annually to be included in the budget of the Department of Education and Culture to finance the operation and maintenance of the Plan and the present Educational Assistance Unit which shall henceforth be called the National Educational Loan Assistance Center to be headed by an Executive Director who shall implement and monitor all plans, policies, measures, rules and regulations issued by the Council in close coordination with the lending institutions."

SECTION 4. This Decree shall take effect immediately.

DONE in the City of Manila, this 2nd day of May, in the year of Our Lord, Nineteen Hundred and Seventy-Eight.

Published in the Official Gazette, Vol. 74 No. 37, 5733-P Supp., on September 11, 1978.