Student Loans in the Philippines

Generally, the goal of every Filipino student is to get a college or a postgraduate diploma that they can use to gain employment and advance their careers. However, such education does not come cheap. Although various institutions offer scholarship grants or financial assistance, slots are only limited or sometimes unavailable, and oftentimes funds are given late. 

Fortunately, there are student loans available in the Philippines to date. Filipino students no longer need to come from a wealthy family in order to get a degree. Student loans will help them achieve their dreams and escape poverty. 

What Is A Student Loan?

A student loan is a type of loan that is intended to help students pay for college. The loan is usually available from the government or a private lender. Moreover, student loans must be paid before or after they finish their studies, along with the interest that accumulates over time. The funds are typically used for tuition, living expenses, books, supplies, allowance, or other educational expenses. 

Advantages of Student Loans

Student loans are often referred to as “good debt” as they provide additional benefits that are not available with any other loans such as personal loans, home loans, and so on. 

The following are some of the benefits of student loans that every student can take advantage of:

• Student loans provide financial assistance to students who would not otherwise be able to attend college.
• Student loans often offer flexible repayment plans that adapt to the borrower’s income and cost-of-living expenses. 
• Borrowers are not required to have a credit history in order to be qualified for a student loan. 
• Many student loans have a “study now, pay later plan” plan. Meaning, borrowers are not required to repay the loans only until after graduation.  
• Student loans often have lower interest rates than private loans. 
• Fixed interest rates on student loans prevent loan terms from changing over time.
• The loan application is easy and hassle-free. 
• The loan proceeds are disbursed immediately once the application is approved. Unlike scholarship grants, which are always awarded months after the application is submitted.

Non-Government Banks and Institutions That Offer Student Loans In The Philippines

Aside from the government institutions such as CHED UniFAST, GSIS, and SSS, some non-government banks and institutions also offer student loans in the Philippines. 

InvestEd Student Loan

• Interest rates: 2.25% to 2.92% per month 
• Minimum/maximum loanable amount: Php10,000 to Php100,000
• Who can apply: Filipino citizens who are at least 18 years old and above, and are currently enrolled in any of the universities in the Philippines. Moreover, he/she must be in the final two (2) years of college. 

Bukas Tuition Installment Plans for College and Graduate Students

• Interest rates: 1.5% to 2% per month 
• Minimum/maximum loanable amount: Up to 100 percent of tuition fees, and other miscellaneous fees
• Who can apply: Filipino citizens who are at least 18 years of age and about to enroll or already enrolled as an undergraduate or postgraduate student in any of Bukas Partner Schools (EAC, FEU, JRU, LPU, Mapua, NTC, OLFU, etc.)

Conclusion

Student loans allow Filipinos to be able to fight for their diplomas without the fear of financial embarrassment, especially now that education is the most important factor that contributes to the wage differentials. Although it may appear to be a quick solution to support education at first, it also carries a lesson in handling finances responsibly. Indeed, applying for a student loan in the Philippines is more of an investment rather than a cost.