New education loan for SSS, GSIS members OKd

by Zen Hernandez, ABS-CBN News

Posted at May 02 2012 08:29 PM | Updated as of May 03 2012 04:29 AM

New education loan open to SSS, GSIS members
MANILA, Philippines - Members of the Social Security System (SSS) and Government Service Insurance System (GSIS) may avail of education loans from the government.

Budget Secretary Butch Abad on Wednesday said the government is now geared towards making investments on tertiary education by providing subsidies through the Educational Assistance Fund Program (EAFP).

On Tuesday, President Benigno Aquino gave the green light for the P11.2-billion program that will be coursed through SSS and GSIS.

According to Abad, remitted dividends from government-owned or controlled corporations (GOCCs) reached P19.5 billion.

The amount exceeded the Department of Budget and Management's forecast of P5.5 billion, giving the national government extra money to allocate for the EAFP.

Under the EAFP, P4.2 billion will go to GSIS members.

Members may borrow P4,000 at 6% interest, payable over a 5-year period for all their beneficiaries.

On the other hand, P7 billion will be allotted for SSS. Only SSS members with monthly salaries of P10,000 or less may avail of the loan.

Abad said this is because they expect more SSS members to have higher salaries compared to GSIS members.

SSS members who will avail of the loan for their beneficiaries will be able to get P15,000 per semester.

Repayment period starts after the student's graduation.