The House Committee on Economic Affairs on Monday urged the Bangko Sentral ng Pilipinas (BSP) and Development Bank of the Philippines to extend more loans than they do at present to educational institutions.
Rep. Frederick N. Siao of the Lone District of Iligan City cited the latest data available from the BSP, showing banks and other financial institutions lending the education sector less than 1 percent of their collective portfolio in 2017 and in the first two months this year.
Given this, Siao urged banks to allocate more loans to the sector.
“The Bangko Sentral and the Development Bank of the Philippines ought to craft policies for and implement concessional loans to the education sector. An education sector loan facility or window might be appropriate,” he said
In January the lawmaker said loans to educational institutions amounted to only P32.8 billion while motor-vehicle loans totaled P262.8 billion.
Also, he said preliminary figures in February this year show loans to the education sector totaling P33.75 billion and compared that to car loans of P266 billion.”
“One reason Philippine education is lagging behind other countries, or even here in Southeast Asia, is the limited financial support to our schools,” he said.
“I believe the national government must find ways to make loans and grants accessible and affordable to schools,” he added.
Also, Siao said the Department of Finance may also help by seeking foreign grants for public and private schools.
“For huge capital outlays, education bonds may be the proper solution,” he particularly said.
“Private banks must also carry their just share of the burden to improve the quality of education in our country by giving more loans to elementary schools, high schools, colleges and graduate schools,” he added.
Currently, three such proposals have been sent to the House Committee on Education creating a national student loan program.
Rep. Gloria Macapagal-Arroyo of the Second District of Pampanga, one of the authors of the program, said easy access to higher education opportunities remains especially elusive for the poor.
“Enough emphasis has been given to this fact but a lot remains to be done since education is considered a strategic key out of poverty. In the country, a little over 11 percent of the labor force has a college education. Moreover, in our college-age population, less than 50 percent are enrolled in tertiary educational institutions and about 70 percent live below the poverty line,” she said.
Arroyo added her proposal seeks to create a national student loan board which will implement a national student loan program for the poor, define its powers and functions and appropriation the necessary funds.
“There is no doubt on the need for such student loan program to assist the poor and needy and provide them access to tertiary education. Empowering them with decent education will give them more opportunities and help alleviate their impoverished lives. If we wish to become the next economic tiger of Asia, we need to educate our country’s less fortunate and make them major contributors in the Philippine society and in nation building,” Arroyo said.
Image credits: Bloomberg