Albay, Land Bank sign P700-million scholarship loan agreement

MANILA, Philippines - Albay province has signed a P700-million loan package with Land Bank of the Philippines (LBP) to finance a first-in-the-country education strategy that aims to produce “a college graduate for every family” through an encompassing yet simplified study-now-pay-later scheme.

Albay Gov. Joey Salceda, who conceptualized the package, called it “education-driven development scheme anchored on a vigorous, well planned, financed and executed college and vocational education, a system that practically invites more scholars, ups enrolment and produces more graduates.”

Salceda signed the loan agreement with LBP president and chief executive officer Gilda Pico in the presence of LBP and Albay officials, members of the provincial board, and media men at the LBP main office in Manila.

The loan will finance government scholarships in the tertiary level, under the Albay Higher Education Contribution Scheme (AHECS), enrolled at the Bicol University and other community colleges in the province. This year alone, it will pay for over 12,000 college freshmen until they graduate.

“I would have placed this amount in infrastructures. But I believe diplomas give better economic returns than roads and bridges,” Salceda said.

The program is projected to trigger a 40-percent growth in college enrolment in Albay. He projects Albay will shortly gain the reputation as the natural source of a well-educated labor force that will also serve as a come-on for investors.

“A well-educated constituency has a lot of social paybacks and economic benefits. It expands labor mobility and graduates will seek better jobs. The difference in economic return between an elementary graduate and a secondary graduate is about seven percent; between a college graduate and a high school graduate, it is about 21 percent. With diplomas, graduates can seek jobs elsewhere and not cramp the limited jobs market of Albay. Diplomas are like visas,” he added.

Considered a first of its kind in the country, Albay’s education program at all levels, has lately been gaining grounds, raising students’ learning standard as proven in the 2009 National Achievement Test (NAT) where Albay placed 106th out of 202 divisions, big leap of 69 places from a poor 175th in 2007.

Salceda said the province’s present goal is to get to the top 40 schools in NAT within the next three years, and the top 10 within six years.