State-run lender Land Bank of the Philippines on Thursday announced that it was offering up to P300,000 in loans for parents and guardians of students under its “study-now-pay-later” program in school year 2021 to 2022.
The direct loan program is launched to cover students’ tuition to assist parents or guardians “who may be reeling from effects of the COVID-19 health crisis,” Landbank president and CEO Cecilia Borromeo said in a statement.
The state lender has allotted P1.5 billion in credit support under its I-STUDY or Interim Students’ Loan for Tuitions towards Upliftment of Education for the Development of the Youth lending program to cover the tuition and other enrollment-related fees of eligible students.
The I-STUDY Program is open to parents and guardians of incoming students who are qualified under the admission and retention requirements of an academic institution recognized or accredited by the Department of Education (DepEd), Commission on Higher Education (CHED), or the Technical Education and Skills Development Authority (TESDA).
Parents and guardians can borrow the amount of tuition equivalent to one school year or two semesters, or up to P150,000 per student but not more than P300,000 per eligible borrower.
“Landbank supports President Duterte’s call to finance students’ access to quality education amid the economic challenges brought about by the pandemic. Through the I-STUDY Lending Program, we hope to help students finish their studies despite the difficulties they are facing,” Borromeo said.
The I-STUDY lending program offers an affordable fixed interest rate of 5% per annum for short term loans for pre-school, primary, and secondary students payable within one year, as well as for term loans for tertiary students payable up to a maximum of three years, inclusive of one year grace period on the principal.
Eligible parents and guardians should have an established repayment capacity, credit history, and good credit standing.
Eligible students, meanwhile, cannot be a current beneficiary of the Universal Access for Quality Tertiary Education Act of 2017 or Republic Act No. 10931, or any scholarship program or privilege granted to honor students and should be of good moral character as certified by school. -NB, GMA News