Updated August 4, 2022
June 15, 2022
According to a study conducted in the Philippines after the pandemic, 64% of households reported that a house member lost their source job due to the effects of the COVID-19 pandemic.
Another post-pandemic research projected that roughly 44,000 Filipino students were likely to drop out of school due to the financial crisis that stemmed from the pandemic. The number of people enrolling in schools is also reducing, and there's now a high need for loans to help students out.
Luckily, the government and various private bodies are now offering cash loans for students. These loans can help cover tuition fees, equipment needed for schooling, and other student expenses.
Student loans are for students who have failed to secure scholarships/grants and those without adequate funding.
This article will dive deep into Filipino student loans and how they work. We'll also explore the different types of student loans, how you can get them, and the best ones to choose.
Student loans are special types dedicated to helping struggling students pay for their undergraduate or postgraduate education. These loans are usually broad and cover tuition fees, the cost of books and education supplies, allowances, living, and other school expenses.
Student loans are also called tuition loans or education loans. Student loans can be paid in installments with pre-agreed interests like most other loans. Some agreements also allow students to pay back the loan after they graduate.
An average Filipino wants to go to school, get a paying job and take care of themself and their family. However, the financial crisis in the country has made it very hard for people to follow that dream.
Thankfully, the government has come up with some loan programs to allow students who lack adequate funding for their tertiary education. Here are some of these programs.
1. CHED Unified Student Financial Assistance System for Tertiary Education (UniFAST) Student Loan Program
The Commission on Higher Education (CHED) is an institution that was founded to promote tertiary education in the Philippines. They aim to encourage and guide youths toward education, and one of the ways they achieve this is through student loan Philippines programs like UniFAST.
Beneficiaries of the UniFAST loan program are college students, law students, medical students, and graduate students.
To be qualified for the UniFAST student loan,
The maximum loan amount is Php 60,000. If you pay the loan during or before the end of a semester, there is no interest attached. A 6% interest rate will be attached to loans paid after the end of a semester.
Lastly, you can pay these loans in a year. You can choose to pay them through your school, where it will later be remitted to the Development Bank of the Philippines (DBP), or you can pay directly at any DBP branch close to you.
2. Government Service Insurance System (GSIS) Educational Loan
GSIS student loan programs are for kin of GSIS members that have served the country for at least 15 years. A qualified GSIS member can only nominate two people for this loan.
To be a qualified GSIS member:
To be a qualified student:
The maximum loan amount is Php 100,000 with an annual interest rate of 8%.
Monthly installment payments can span up to 10 years. Also, payments start on the sixth year of the loan. So for the first five years, payments are not required.
Many private bodies have also stepped up to provide student loans for struggling students. Here are some Non-Government Student Loans available for Filipinos:
1. InvestEd Student Loan
Besides helping students with easy access to loans, InvestEd also assists students with lessons on how to pay and manage loans.
To be qualified:
InvestEd offers loans ranging from Php 10,000 to Php 100,00 with monthly interest rates of 2.3-2.9%. The loans can be paid after graduation, and there's room for flexible adjustments.
You can either pay online or offline in Bayad centers and pawn shops.
2. BPI Personal Loan
BPI offers different types of loans, including student loans for parents who want to fund their children's education.
To be qualified:
The minimum loan amount is Php 20,000 with an annual interest rate of 25.60%. There's also a Php 1,500 one-time Processing Fee and a documentary stamp tax if the loan amount is greater than Pho 250,000. Monthly installments start 30 days after the loan was booked.
If you plan to take a loan to fund your studies in the Philippines, there are three options. Government-based loans, bank loans, and online loans for students.
Here are some lending companies students can try out:
Loan consolidation is simply taking out a bigger loan to pay off your other loans.
While some educational loans in the Philippines allow students to pay up after graduation, there's no guarantee they'll find a paying job after they've graduated. The inability to pay up educational loans can increase interest rates and late fees. This can lead to a severe financial crisis and a bad credit score.
Luckily, student consolidation loan companies in the Philippines offer consolidation loans up to Php 2,000,000. Here are the most trusted consolidation cash loans for students:
Education is one of the greatest assets a man can have, and that's why people strive to go through school. But sometimes, the funding for school can be very hard to get, and not everybody is lucky or qualified enough to get scholarships or grants.
Student loans in the Philippines are for students who want to pursue undergraduate or postgraduate courses but don't have the funding. The loans usually cover tuition, schooling equipment, and other expenses. Some arrangements even allow students to pay back after graduation.
Before applying for any loan for students, ensure you do your research and read the loan terms and conditions.
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