Good news: Student loans may soon be granted
The Commission on Higher Education will be increasing its funding for student loans to P4 billion from P215 million, the Philippine Daily Inquirer reports. Due to this, student loans may soon be available from the government of as much as P30,000 per year to finance their education. This will serve as financial aid to less fortunate students and they can pay it later.
The funds could be availed of as early as the second semester of the current school year which begins in November. The student loan program’s bank is the Land Bank of the Philippines which has committed itself to providing some P1 billion in funding.
Further, the qualification standards will not be that strict so everyone can avail to it. The program will be available by the second semester this year and will be fully implemented by 2008.
With this increase in budget for student loans, the CHEd will be able to provide about P30,000 per year (or P15,000 per semester) to each of almost 200,000 student beneficiaries.
Many researches about the prevalence of out-of-school youths in our country had been conducted and financial problems or poverty are cited as the major reason for quitting from school. It’s a good thing that the government is making a move to solve this increasing problem.
Student loans?
It’s a cosmetic solution that fails to address the reason why students can’t attend school. Instead, the government should put in more funds into the state universities, build more classrooms, publish more credible books and raise the salaries of teachers.
Good point, Jhay. I think the government should provide a sustainable solutions such as what you have just suggested to properly address problems in education.
Fantastic Post. Secured Loans are a popular way of borrowing larger sums of money by securing it against your property. Remember though, while the rate and monthly amounts look good, you will be paying back over a longer period of time and therefore will pay more money back in the long term.