SSS Educational Loan - requirements, mechanics and who can avail (7-billion in funds)
Yes, recently, the SSS educational loan has opened for its members and as usual, there are and will be guidelines for those interested and asking how to avail of the said loan offer for school tuition fees and more.
The said Social Security System Educational Assistance Loan Program or (SSS-EALP) can cover educational costs for college, vocational and technical courses alike.
At least 200,000 members were targeted to benefit from this new program of the SSS after its defunct Study Now Pay Later plan back in the 90's where a classmate of mine was able to avail and haven't yet paid to this date.
Loan Application Requirements :
As initial information, for those who are looking on the different requirements to apply for the said SSS loan, according to a leading newspaper, The Philippine Star, only members earning up to P10,000 per month can avail of the loan this year 2012.
Members must have at least 36 contributions – including three monthly premiums within the past 12 months – are eligible to borrow for educational expenses of one beneficiary.
Who May Apply for the SSS Educational Loan :
- Member must also be paying premiums based on a monthly salary credit of P10,000 or lower.
- Beneficiaries can be the SSS members themselves, legal spouses or children.
- Unmarried members can use the loan for the education of
- Borrowers who intend to avail can use it for college courses, for a maximum loan of P15,000 per semester or trimester and P7,500 for a vocational or technical course, which must be a degree program of at least two years or more.
- Loan releases will be made payable to the school and must be used for tuition and miscellaneous fees only.
- The school of choice must be duly accredited by the Commission on Higher Education or the Technical Education and Skills Development Authority.
- Depending on the courses to take for qualified beneficiary, members have 3-5 years to repay the loan under the SSS program.
- The loan amount shall be funded on a 50:50 basis from the National Government and SSS.
- SSS portion of the loan carries an interest rate of 6% per year / annum based on diminishing principal balance until fully paid, while the government share has 0% interest rate.
- For four-year courses, SSS members will receive P15,000 per semester with six percent interest payable within five years after the beneficiary's graduation.
- For two-year courses, members will get P7,500 per semester with six percent interest payable within three years after graduation.
- Each member is entitled or limited to have only one beneficiary.