Senators are at work on a proposed enabling legislation providing college students with long-term personal loans for living expenses under Senate Bill 274 filed by Senator Manuel “Lito” Lapid.
The Lapid bill aims to establish the College Living Expenses Financing (CLEF) program intended to “support higher studies of Filipino students of good academic standing.”
Once enacted into law, it will mandate the national government to set up a loan guarantee fund on student loans to be provided by the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines (LBP).
As filed, the bill recognizes Republic Act 10931, also known as the Universal Access to Quality Tertiary Education Act, which provides for free tuition and exemption on other fees for students of state colleges and universities.
It also provides that the administration of the CLEF Program will be a shared responsibility of the (1) the Commission on Higher Education (CHED)—which shall process and endorse the loan application requirements of eligible students and (2) the disbursing financial institutions, which shall release the amounts based on an approved disbursement program agreed with the student.
Lapid anticipates that once enacted, his proposed law will “significantly contribute to making quality education accessible to all,” even as he noted that “there a lot more factors that hinder the attainment of this desired goal.”
For instance, he expects that “one such obstacle is the cost-of-living expenses and other education-related expenses which discourage qualified students in families below the poverty line to consider pursuing higher education.”
Lapid noted: “Libre man ang tuition para sa ating mga estudyante, batid kong marami pa ring nahihirapan tumuloy sa kolehiyo dahil wala silang mapagkukunan ng pangtustos para sa kanilang pamumuhay habang nag-aaral.”
He conceded this is “more problematic” for students coming from far-flung areas. “Mas ramdam pa lalo ang problemang ito ng mga estudyanteng galing sa malalayong lugar at kailangan pang magbyahe at lumipat para makapag-aral. Kailangan na mabigyan sila ng pagkakataon na magkaroon ng pagkukunan ng pondo para sa kanilang tirahan, libro at iba pang gastusin habang nag-aaral sila,” Lapid explained.
The senator pointed out the CLEF Program is a long-term personal loan program designed to provide for the living expenses of Filipino College students. The loan will cover the following expenses: board and lodging, living allowance, transportation costs, food expenses, uniforms and personal clothing, books and supplies, internet and digital connectivity expenses, and other miscellaneous expenses.
In addition, the Lapid bill assures that the CLEF program will be made available to all Filipino students who are either enrolled at the time of the effectivity of the act, or admitted to enroll at any time thereafter, in courses leading to a bachelor’s degree in any higher educational institution accredited by CHED.
It also provides that each eligible student shall be entitled to a maximum loan amount of P50,000 per semester and a maximum of P400,000 allowing for up to five years of college enrollments. The loan shall have a maximum term of 25 years and interest rate lower than prevailing interest rate subject to the discretion of the disbursing financial institutions. Amortizations shall also start one year from the date of graduation or the end of the last semester of enrollment.
Image credits: Joseph Vidal/Senate PRIB