SSS eases up requirements for educational loans

The Social Security System has made it easier for members to avail of its Educational Assistance Loan Program to help college and vocational-technical course students to meet their financial requirements for enrollment.

SSS President and Chief Executive Officer Emilio de Quiros, Jr. on Thursday said members earning P25,000 and below per month are now eligible for Educ-Assist loans from the previous P15,000 maximum monthly income requirement.

"Members can now borrow up to P20,000 per semester or trimester, up from the previous limit of P15,000 for college degrees. For voc-tech courses, we likewise increased the maximum loanable amount to P10,000 from the previous cap of P7,500 per semester or trimester," he said.

The P7-billion loan fund consists of a P3.5 billion subsidy from the government a P3.5-billion counterpart funding from SSS. Loan beneficiaries can be SSS members and their children, while unmarried members can have their siblings, including half-brothers or half-sisters as beneficiaries. The new guidelines also allow a married SSS member to designate up to two loan beneficiaries who can be the member himself or herself, his or her spouse or legitimate or illegitimate children. Unmarried members, meanwhile, remain entitled to one loan beneficiary.

"It is now possible for a married couple, who are both qualified borrowers, to support the education of up to four children through Educ-Assist loans. Meanwhile, unmarried members can use the loan to help their siblings pursue their studies and lighten their parents’ financial burden at the same time," de Quiros said.

Under the new guidelines, SSS members with a minimum of 12 posted contributions, including at least one paid contribution within the past three months prior to the application are now allowed to borrow. Members who were not able to pay withing the past three months can pay and present the proof of payment to SSS. The old guideline requires at 36 monthly contributions.

"The SSS has disbursed over P195 million so far in Educ-Assist loans to thousands of student-beneficiaries all over the country. We have already earmarked about P590 million, or 11 percent of the total fund allocation, for these students so that they can complete their chosen course, and we expect availment to increase further as a result of the revised guidelines," de Quiros said.

Loan repayment will start one year after the beneficiary's graduation of the date of the last loan release. Borrowers for college degree programs have five years to repay the loan, while those who borrowed for voc-tech courses are given three years.

Colleges where applicants intend to study must be accredited by the Commission on Higher Education while the voc-tech course must be at least a two-year program recognized by the Technical Education and Skills Development Authority. Educ-Assist application forms are available at SSS branches or downloadable from the SSS website at www.sss.gov.ph.