The Land Bank of the Philippines said Tuesday it is allotting P3 billion credit support for private academic institutions to implement a “study now, pay later” scheme for its students.
Under the state-led lender’s ACADEME or ACcess to Academic Development to Empower the Masses towards Endless Opportunities lending program, Landbank said it has the P3-billion total credit fund for continuing education of students in private high schools, private technical and vocational education training institutions as well as Higher Education Institutions (HEIs) such as colleges and universities.
“The program offers ‘3-3-3’ features with a P3-billion-program fund in credit support, a very low fixed interest rate of only 3% per annum, and payable based on the maturity of the sub-promissory notes but not to exceed three years,” Landbank said in a statement.
It forms part of Lanbank’s social investment package to encourage students to pursue and finish their education.
The Landbank ACADEME lending program is open to private/non-Department of Education (DepEd) Junior/Senior High Schools with permit to operate by DepEd, as well as to private Technical-Vocational and Education Training (TVET) Institutions in partnership with and being regulated by the Technical Education and Skills Development Authority (TESDA).
Eligible borrowers of the lending program also include HEIs such as colleges and universities with undergraduate programs authorized by Philippine Commission on Higher Education (CHED).
The HEIs are accredited by either any of the following: Philippine Accrediting Association of Schools, Colleges and Universities (PAASCU), Philippine Association of Colleges and Universities' Commission on Accreditation (PACUCOA), Association of Christian Schools, Colleges and Universities Accrediting Association Inc. (ACSCU-AAI) or Federation of Accrediting Agencies of the Philippines (FAAP).
"Given the financial constraints brought about by the COVID-19 pandemic, Landbank is financing interventions to ensure that students will be able to enroll in school when classes finally resume. The Landbank ACADEME Lending Program supports the education sector in providing students greater access to quality education amid the health crisis we are all facing,” Landbank president and CEO Cecilia Borromeo said.
The Landbank ACADEME Lending Program offers refinancing or rediscounting of promissory notes issued by the parents or benefactors of students for school loans.
Eligible schools can borrow up to 70% of the sub-promissory notes on a per semester basis and subject further to a maximum amount based on the school’s net borrowing capacity.
The loan will be released either in lump sum or staggered basis per semester, and will be directly credited to the deposit account maintained by the school with Landbank.
The Landbank ACADEME Lending Program will be available until June 30, 2021. —LDF, GMA News