SSS educational loans hit P148.6 M in 2012

MANILA, Philippines - The Social Security System (SSS), the state-owned provident fund for private employees, has released P148.64 million in educational loans last year, the agency said over the weekend.

 The amount went to more than 12,000 college and vocational-technical (voc-tech) students across the country, it said.

 However, the amount is still small compared to the agency’s total available educational loans amounting to P7 billion.

 SSS assistant vice president for lending and asset management Ma. Luz Generoso said they expect more members to borrow this year under the SSS Educational Assistance Loan (Educ-Assist) Program.

“The billions of pesos allotted for the program reflect the government’s firm commitment to bring education within reach of present and future workers. To a wider extent, the Educ-Assist program helps boost national economic growth through increased worker productivity,” Generoso said.

The P7-billion fund came from the pension fund and the National Government. The SSS earmarked P3.5 billion for the SSS Educ-Assist program, launched last year, while the National Government chipped in P3.5 billion more as counterpart funding.

Last year’s loan disbursements went to 11,790 college enrollees totaling P145.84 million, while another P2.8 million was released for 398 students taking up voc-tech programs.

The SSS’ educational program is intended for those earning low or minimum wages. Initially, only active SSS members with a monthly income of P10,000 or below may borrow.

“Now, members earning up to P15,000 per month may qualify for SSS Educ-Assist loans, as long as they have up-to-date payments to other SSS loans and at least 36 monthly contributions, three of which must be posted within the 12-month period prior to application date,” Generoso said.

Beneficiaries of the educational loans may be the SSS members themselves, their legal spouse or dependent children, while unmarried members can designate their siblings and other immediate family members as beneficiaries.

Only one beneficiary is allowed per SSS member.

Similarly to a study now-pay later scheme, the SSS allows a maximum loan release every semester or trimester at P15,000 for college degree programs and P7,500 for voc-tech courses.

Payment will only start one year after graduation or from the date of the last loan release, at an interest rate of about three percent per annum. Members will repay the loan within five years for college courses and three years for voc-tech programs, the SSS also said.