WE Filipinos have a deep respect for education. When I was young, my parents reminded me and my siblings of the importance of education. They wanted to stress for us that the end of our studies is the only legacy they can leave behind.
Education indeed plays an important role in our society. Whether through face-to-face, co-ed or online courses, nothing can stop parents from investing in their children’s education – whether in primary, secondary or higher education – not even the Covid pandemic -19.
At SSS, we recognize the importance our culture places on education. This is why, in 2012, the SSS launched the Student Assistance Loan Program (PAE), which aimed to help member-borrowers and their beneficiaries to cover the tuition fees of college diplomas and training courses. professional.
EALP is a joint initiative of the SSS and the national government to provide affordable educational loans to qualified members of the SSS. Initially, it has a budget allocation of 7 billion pesos, of which 50 percent came from the national government and the remainder was SSS counterpart.
The main collections are donated to the EALP Fund to serve new beneficiaries. Thus, the repayment of loans by borrowing members is essential to the continuation of this program in the future.
To qualify, interested members must meet the following criteria:
- less than 60 years old;
- with an actual monthly basic income of P 25,000 or less;
- with at least 36 mailed contributions, six of which were posted in the last 12 months preceding the month in which the EALP application was submitted;
- the updated payment of other loans from existing members of the member; and
- no overdue accounts with SSS.
Members, their legal spouses and their children can benefit from the EALP. If a member is single, their siblings can also borrow from the program. However, only one beneficiary is authorized for each eligible borrower member because the program does not allow substitution either.
For a university course, a qualified borrower can obtain a maximum loanable amount of P20,000 per semester, quarter, quarter or net tuition / miscellaneous / cash assessment, whichever is lower. For example, a four-year college program will be allowed with a maximum number of availabilities in eight semesters, 12 quarters, or 16 quarters, or P 160,000 as the total allowance.
For a five-year study program, a borrower can avail a loanable amount equivalent to 10 semesters, 15 quarters or 20 quarters, or a maximum of P200,000 total allowance.
Borrowers can also use EALP for a two-year professional or technical course. They can borrow a maximum loanable amount of 10,000 pesos per semester or term or the net balance of tuition / miscellaneous / assessment in cash, whichever is lower. The maximum number of availabilities is four semesters or a maximum total allocation of 40,000 P. For example, in a quarterly program, the borrower may have a maximum number of availabilities of six quarters or a maximum allocation of 60,000 P.
The program charges an interest rate of 6% per annum based on the declining principal balance until it is fully paid, a maintenance fee of 2% of the consolidated principal loan balance, and a penalty of 1% per month for any unpaid amortization.
The reimbursement begins the month following the consolidation of the EAL, either after 18 months for semester programs, 15 months for quarterly programs, or 14 months and 15 days for quarterly programs from the month of the last discharge.
The payment period is five years maximum for a degree course and three years for a professional or technical course. The repayment period is determined during the consolidation of the account. Any outstanding loan balance will be deducted from the borrower member’s future SSS benefit.
Interested members and their beneficiaries can apply for the program by submitting to the nearest SSS branch a completed EALP application form, valid ID, assessment or billing statement from current school, proof monthly salary / income of the borrower member and proof of relationship with the Beneficiary.
US business mogul Warren Buffett once said, “You can better prepare for the economic future by investing in your own education. If you study hard and learn at a young age, you will be in the best of circumstances for your future.
We hope that SSS members and their beneficiaries will take this opportunity to complete their studies, which can serve as a gateway to a better and brighter future.
Have a productive week ahead!
Aurora C. Ignacio is President and CEO of SSS.
We welcome your questions and ideas on the topics we are discussing. E-mail [email protected] for topics you might want us to discuss.