GSIS mulls offering student loans amid pandemic

The Government Service Insurance System (GSIS) is planning to craft a special educational loan for its members who have children in college amid the COVID-19 pandemic, according to GSIS president Rolando Macasaet on Friday.

During a Senate hearing of the committees of finance and economic affairs, Macasaet said the economic impact of the health crisis may result in a "mass exodus" from private to public schools. This would lead to the collapse of private schools and might overwhelm those operated by the government.

"I'm estimating let's say an average of about P50,000 per year for the tuition. GSIS can probably pay up to 70% of what the tuition is," Macasaet said, noting that it may be designed as a 10-year loan.

"While the student is still studying for the next four or five years, the member can just probably pay just the interest for the meantime and then after five years you start paying the interest and principal. That way, the monthly amortization will be so little and on the sixth year, the son or the daughter will now start working and both of them can pay the amortization," he added.

To protect the fund of the GSIS, Macasaet said it would probably be the members for 15 years who would qualify.

"After 15 years kasi tested na talaga 'yung, whatever happens to you'll get pension so when you retire I can deduct it from you so there is practically no risk to the fund," he said.

Senator Sonny Angara, meanwhile, expressed concern that such criteria would prevent those who need it most from accessing the educational assistance.

"When you say you want to limit it to those members of 15 years, that might discriminate against the ones who need it more because if you're already a 15-year member of the GSIS, you're already earning substantially, I would think. You've been promoted a number of steps already... maybe something to think about lang," he said.

Macasaet said he will take that point for consideration but reasoned that members for that span of years are usually those who have dependents in college.

"Normally kasi pag 15 years, may anak ka na sa college eh," he said.

Macasaet said this plan will further be reviewed and finalized so that it can be rolled out the soonest possible time.

The GSIS has around two million members and 500,000 pensioners, according to him.—AOL, GMA News