Senate President Francis Escudero during the Kapihan sa Senado forum on December 5, 2024. Noy Morcoso/INQUIRER.net
MANILA, Philippines — Senate President Francis “Chiz” Escudero said the newly-signed Student Loan Payment Moratorium During Disasters and Emergencies Act is a “timely intervention” from the government as many areas nationwide are still reeling from the devastation of multiple typhoons.
According to the top Senate leader, the new law will “help curb the cases of enrollees dropping out of school due to financial constraints.”
President Ferdinand Marcos Jr. on Friday enacted the Student Loan Payment Moratorium During Disasters and Emergencies Act, which offers breathing room to calamity-distressed students as it stops student loan collections and suspends student loan penalties or interest during and after disasters.
READ: Marcos signs laws to boost aid for calamity-hit families, students
“We are currently experiencing a higher frequency of weather disturbances that are more intense and destructive,” Escudero said in a statement Friday.
“We always see the destruction caused in the aftermath of these calamities, but we often miss the other victims, the students, many of whom end up sacrificing their future because of these disasters,” he added.
Under the law, payment for all fees, charges and costs related to student loans for higher education as well as technical vocational education and training programs would be postponed if there is a state of calamity in the jurisdiction where the school or learning institution is located.
The moratorium would include financial dues administered by the higher education institutions, technical-vocational institutions, the Unified Student Financial Assistance System for Tertiary Education Board, the Commission on Higher Education, and other government agencies or instrumentalities.
Availing the moratorium gives students the option to ensure that their eligibility for re-enrollment or graduation would not be affected by the deferred loan payments.
READ: Enrollment in Philippine schools declining — DepEd data
The Student Loan Payment Moratorium During Disasters and Emergencies Act also specifically notes that penalties or interest would not be applied to delated student loan payments as it encourages schools to set up favorable payment terms and other financial aid to calamity-affected students.
Escudero, however, clarified that the law does not condone the loans but only freezes payment for up to 30 days after the state of calamity or emergency is lifted.
The signing into law of the Student Loan Payment Moratorium During Disasters and Emergencies Act came a few weeks after a series of six tropical cyclones pummeled many parts of the country from October to November, resulting in deaths and destruction as billions of pesos were lost in agriculture and infrastructure. The successive calamities likewise disrupted education as it forced the cancellation of classes amid bad weather and because some schools were either ruined or used as evacuation centers.
In 2023, Senate Bill No. 1864 was filed and approved at the upper chamber. Escudero co-authored and sponsored the measure that was eventually named Student Loan Payment Moratorium During Disasters and Emergencies Act.
“This law adheres to the spirit of ‘damayan’ among Filipinos. It is the obligation of the government to ensure that each and every child has access to education and to find ways to remove any obstacles that stand in the way of her or his full education,” Escudero said.
Tropical cyclone magnet
Sen. Lito Lapid, another author of the measure, underscored the significance of the new law for Filipinos, noting that an average of 20 tropical cyclones visit the country every year – leaving “very devastating effects.”
“Ang batas na ito ay handog natin sa ating mga estudyante at sa kanilang mga pamilya. Bahagi ito ng mga batas na tutulong sa mga ating mga kababayan na naaapektuhan ng mga kalamidad,” Lapid said in a statement on Friday.
(This law is our offering to our students and their families. This is part of our laws that help our fellow countrymen affected by calamities.)
“Layunin po ng batas na ito na bigyan ng kapanatagan ang mga pamilyang Pilipino na patuloy na mag-invest sa pag-aaral ng kanilang mga anak.”
(This law aims to give peace of mind to Filipino families to continually invest in the studies of their children.)
“Narito po ang inyong gobyerno upang tulungan kayo kung sakaling mangailangan kayo dahil sa mga delubyong dumaraan sa ating bansa taun-taon,” he added.
(Your government is here to help you in the event that you need us due to the disasters that pass our country every year.)