GSIS earmarks P6.3-B to restructure educational loans
MANILA — State-run pension fund Government Service Insurance System is offering a restructuring program to its about half a million members with outstanding educational assistance loan (EAL), while the Social Security System said disbursements for education beneficiaries already hit over P4.6 billion during the last five years.
In a statement over the weekend, the GSIS said it earmarked P6.33 billion for the restructuring facility called EAL 2, which members could avail of until Dec. 31, 2017.
“Under the second phase of the program, members may renew their educational loan and obtain a P10,000 gross amount from which the outstanding balance of the first loan will be deducted,” the GSIS
“Active members may apply if they have existing educational loan, have no pending administrative case or criminal charge, are not on leave of absence without pay, have remitted at least three monthly premium contributions within the last six months prior to loan application, and have minimum net take-home pay of P4,000 after all required monthly obligations have been deducted,” the GSIS added.
“This year’s educational loan is payable in 60 equal monthly installments of P216.67 at 6-percent interest rate per annum computed in advance. It is covered by a loan redemption insurance, which deems the loan fully paid in case of the borrower’s demise, provided that loan repayment is up to date,” according to the GSIS.
The GSIS said qualified members must personally apply for EAL 2 at any of its offices. The proceeds will be credited to the borrower’s GSIS electronic card (eCard) or Unified Multi-Purpose ID (UMID) card.
Meanwhile, SSS president and chief executive Emmanuel F. Dooc said in a separate statement that since its education assistance loan program (EALP) was rolled out in 2012, 81,200 student-beneficiaries have applied and secured benefits amounting to a total of more than P4.6 billion.
“The program only started five years ago and we have already served more than 73,000 members and their beneficiaries. This partnership with the national government is really meant to help our members finance the educational need of their immediate family members,” Dooc said.
“We wish that the program fund will continue to revolve among our member-borrowers and future beneficiaries. So we also ask our successful beneficiaries, those who have already completed either a college degree or vocational course, to pay their respective loan amounts. Loan payment is also easy with up to 18 months of grace period from the last release of loan proceeds,” Dooc added.
Dooc said the SSS received last May P73 million from the national government as part of its share to the education assistance fund program (EAFP).
“The amount disbursed by the government was requested by the SSS in advance in lieu of the expected number of applications for the upcoming semester,” Dooc explained.
Dooc said that under the EAFP, “the SSS was allowed to provide educational loan assistance to its members of up to P7 billion, [of which] P3.5 billion will be financed by the national government, as approved by then President Benigno Aquino III, while the other P3.5 billion will be from the SSS.”
“Loan beneficiaries can be SSS members, including their legal spouses or children. Unmarried members can have their siblings, including half-brothers or half-sisters, as beneficiaries. To qualify for the loan, members must not earn more than P25,000 a month,” Dooc said.
“At present, the EALP fund has already been allocated to member-beneficiaries. However, the SSS still receives application to the loan program on a waitlist basis. Only when a member-beneficiary has dropped or graduated from school will there be an opening for a new loan applicant,” Dooc added.
“The fund of this program is a revolving fund. We have to wait for the repayments from our successful beneficiaries which will be used for future loan releases,” according to Dooc. SFM
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