Private Student Loans in the Philippines

What is a Private Student Loan? 

A student loan is a type of loan that has been created especially to assist students to pay for their education. Student loans can be used to pay for tuition, books, room and board, and other educational costs. Students can use the loans to complete secondary education and tertiary education. 

A private student loan, however, is a type of student loan banks, non-government financial institutions, and credit unions offer.

Companies that Offer Private Student Loans in the Philippines

There are different institutions that offer education loans to students who need assistance to help them finish their college education. They are the following:

BUKAS

BUKAS has partnered with most of the top universities in the Philippines that allow students to apply for a student loan online. They can visit their website, download the BUKAS app, and submit complete requirements. 

Loan Amount: Php10,000 to Php100,000

Interest Rate: 1.5%

Repayment Period: 12 months or 1 year

Qualification

• Filipino citizens who are at least 18 years old.
• Currently enrolled as an undergraduate or graduate student at one of the Bukas’ partner schools.
• Applicants must also have a guardian or guarantor aged 21 or above (Parents may apply on behalf of the qualified applicant).

Requirements

• School I.D. of the applicant or any government-issued ID
• Tuition/Assessment Form issued by the school
• Guardian’s/Guarantor’s valid ID, proof of residence, and proof of income

InvestEd

What started as a vision to help the next generation of young Filipinos achieve their dreams of getting a degree became a reality when InvestEd was established. It provides access to education to the unbanked youth who are born from poor families but are willing to do the work it takes to live their dreams. 

What is unique about InvestEd is that it does not only provide financing to students but also provides mentoring and coaching to ensure that they will be properly guided in the repayment. 

Depending on the evaluation conducted on the student, the loan amount granted will be between Php10,000 to Php100,000. Students who have been active in the InvestEd student community may also be granted additional loans. The interest rate will be between 2.3% to 2.9% per month. 

Eligibility Criteria

To be able to avail of a student loan, the student must meet the following criteria:

• Must be of legal age. 
• A Filipino citizen residing in the Philippines. 
• Enrolled in a Philippine university. 
• Already in the last 2 years of their college degree. 

Requirements

After passing the eligibility qualifications, the student must fill out the loan application form and will be asked to provide the following documents:

• Government-issued ID.
• Address information.
• Current enrollment status and academic standing. 
• Guarantors.

Land Bank of the Philippines (LBP)

LBP’s loan product offered to students is called Interim Students Loan for Tuition toward Upliftment of Education for the Development of the Youth or I-STUDY, which allows for parents or guardians to borrow an amount that is equivalent to one school year or two semesters. 

Qualified students are those who are in primary or secondary education and avail of short-term loans, while tertiary education students are qualified for term loans. 

Qualifications

• Must be a Filipino citizen.
• Additional qualifications depending on who is applying for the student loan:
  • Parents or guardians must be of legal age and must have an established capacity or repayment and good credit standing. If the applicant is more than 60 yrs old and/or without repayment capacity, he or she must have a co-borrower. Combined monthly net take-home pay should not be lower than ₱20,000.

• The co-borrower (if required) must not be more than 60 yrs old, must have an established capacity for repayment, and with good credit standing.
• If it is the student applying for the loan, he or she must not be over 30 years old and must be an incoming student of any school or institution recognized/accredited by the DepEd, CHED, or TESDA.

Requirements 

• Accomplished loan application form
• Borrower’s valid ID
• Borrower’s proof of income
  • For employed borrowers: Certificate of employment, latest three-month payslips, and latest ITR
  • For self-employed: Business permit and latest ITR
• Proof of billing address and payment record from at least two utility/service companies
• For incoming students: Enrollment form/admission slip with school ID
• For continuing students: Latest enrollment or registration form
• Form 138/Certified True Copy of Grades for previous semester attended
• Certificate of Good Moral Character issued by the school
• Schedule of payment of school fees and other enrollment-related expenses for the semester/school year

Tips When Applying for a Student Loan

Compare Student Loan Offers

There are many private student loans offers available in the market. Before signing on one, make sure to compare the terms offered by each lender. Read the fine print and ensure all fees and charges are communicated and written on the loan offer.

Borrow What is Only Needed

Although the loan amount will be based on the credit evaluation of lenders, there will be instances when borrowers are approved of the maximum loan amount. There is an interest to the total loan amount received, borrowers are better off paying only for what they need and nothing more to ensure financial challenges are avoided in the future. 

Understand What You are Committing To

Ask questions before signing on anything. You must understand that once you have graduated, you will start paying off your student loans. Do not rely on your parents to pay for it for you. Before signing the loan agreement, you can ask the loan officer questions about the terms and conditions of the loan such as what is the total interest charged on the loan, the monthly repayments, and other fees that need to be paid. You can also ask if there is a possible way of charging you with a lower interest. 

Finish Your Education

Finish what you have started. Commit to completing your college education. Once the student loan has been released, it has to be paid. Make sure that you push yourself towards the dreams you have always wanted to achieve. 

Conclusion

There is always a cost to education and for some, the cost may be too high for them or their families to afford. However, the financial struggles of the students should not be a hindrance for them to aspire to receive their desired degree and this is why student loans are excellent means for students and their families to keep on pushing for their dreams.