LEGAZPI CITY – The Provincial government will finance the college education of about 1,600 students starting this school year under a “study now, pay later” scheme.
Called the Higher Education Contribution Scheme (HECS), the pilot scholarship program is patterned after an Australian model and will be managed by the Education Quality for Albayanos (Equal), an office of the provincial government.
It has a budget of P38 million for school year 2009-2010, with the province initially allocating P16 million, Governor Joey Sarte Salceda said.
Program funding may reach P1 billion in six years, or P150 million in releases per year, coming from the national government, international foundations and aid agencies or borrowings, he said.
A close economic adviser of President Gloria Macapagal-Arroyo, Salceda explained his dream of an Australian model in Albay.
“Once an Albayano finishes high school, he just enrolls in any college and degree he chooses and automatically, the government pays for his tuition and even stay stipend which he will pay only when and if he gets a job,” he said.
“Hopefully, after the fourth year, we can increase the limit to cover the full tuition and all other incidentals and even provide a stipend. And by the fifth year, we hope to expand the beneficiaries even to those studying in UP [University of the Philippines], Ateneo [de Manila University] and UST [University of Santo Tomas].”
The program targets community colleges and units of the Bicol University (BU) in Polangui and Guinobatan towns and in Tabaco City.
Under the HECS program, students can apply for P5,000 in loan per semester for the entire course, with a yearly interest of 8 percent.
The student will pay only when he is employed, with amortization fixed at 3 percent of his salary via the Social Security System or the Government Service Insurance System until the amount is fully paid.
If he does not get a job or earns nothing, he pays nothing at all. If he loses his job, then he also stops paying, Salceda said.
“That should compel the government to improve the educational system so he gets a better-paying job,” he said.
