Senate panel approves bill imposing moratorium on student loan payments during disasters

A bill allowing a suspension of student loan payments for higher education and technical-vocational education and training during disasters and other emergencies was passed by a Senate committee on Tuesday.
 
During the Senate Higher, Technical and Vocational Education committee hearing on the bill, Unified Student Financial Assistance System for Tertiary Education (UNIFAST) executive director Ryan Estevez expressed support for the passage of Senate Bill 975, saying this would strengthen the current student loan programs.
 
Coordinating Council of Private Educational Associations (COCOPEA) managing director Joseph Estrada also backed the approval of the measure, saying it is consistent with the provisions stated under the Bayanihan To Heal As One Act—a measure previously enacted to cushion the impact of the COVID-19 pandemic on various sectors.
 
However, Estrada asked if promissory notes would be covered by the moratorium as he raised concerns about its effect on educational institutions' operations.
 
"If this will cover promissory notes—because they are also in the nature of loans—then for a private higher education institution, this will paralyze operations, especially during times of pandemics or calamities where they also need to support salaries and compensation of their employees and the operations of the schools," Estrada said.
 
Asked to comment on COCOPEA's concern, UNIFAST said it will have to study this as the intent of the student loan program is to pay the fees on an installment basis through banks.
 
Senator Francis Escudero, who presided over the hearing as chairman of the panel, said the proposed measure itself does not include promissory notes and is only limited to student loan programs.
 
The Senate panel likewise approved the proposed Free College Entrance Examination Act, several measures establishing Technical Education and Skills Development Authority centers in several areas in the Philippines, and 10 bills expanding the campuses of several state universities and colleges. — VBL, GMA News