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Student Loans Philippines

A student loan is a type of loan where students are privileged to borrow money from the government or a private lender to pay for post-secondary education and the associated fees. Some of these fees include tuition, allowance, books, gadgets and tools, school supplies, dorm, and living expenses. Similar to any other loan, a student loan has to be paid back sometime later along with the agreed interest percentage. What makes student loans different from other loans is most of the time, lenders offer a substantially lower interest rate and, while the student is still studying, the schedule of the repayment is understandable to be delayed.

Additionally, every country has different student loan programs to offer. It differs based on the strict laws regulating renegotiating and bankruptcy of a country. In this article, we will focus only on Student Loans Philippines.

What is a student loan in the Philippines?

In the Philippines, we are all aware of how important a college diploma is. It is always part of our dreams to get the degree that we desire and get a job to help our family. However, college fees such as tuition, allowance, accommodations, and a lot more cost quite a lot of money. Not all of us can afford it. Fortunately, a lot of student loan programs are already available in our country, especially the ones launched by CHED and DPB.

In addition, numerous private companies and lenders established their online loan platforms that also include student loans which helped a lot in providing monetary assistance to financially-challenged Filipino individuals who want to continue pursuing tertiary education.

Student loan program in the Philippines

It was only in 2019 when the Commission on Higher Education (CHED) and the Development Bank of the Philippines (DBP) started a student loan program that offers short-term loans to college students. Similar to student loans in other countries, individuals are issued a loan that they can use to fund and pay for their college educations.

There are two types of student loan programs in the Philippines short-term and long-term Student Loan programs (SLP). However, for Academic Year 2018-2019, college students were only allowed to apply for short-term SLP for review expenses for licensure examinations, undergraduate studies, and graduate studies including medicine and law for Filipino students.

All Filipino students at the undergraduate and graduate levels (including medicine and law) can avail of the short-term Student Loan Program. Filipino students enrolled in programs that are listed in the Registry of quality-assured programs offered in LUCs, SUCs, private HEIs, State-run TVIs, and private TVIs are eligible to administer Student Loan Program through GFI, banks, and similar entities that are sanctioned by the UniFAST Board to handle this SLP.

International student loan Philippines

Filipino Students studying out of the country commonly rely on their own money or family to support them financially while staying abroad. They may also receive fee waivers from their university or receive scholarships or awards, either way, these funds, and scholarship doesn’t cover all the cost. Because of this, International Student Loan recognizes the problem and started to offer international student loans for Filipino students who require additional funding for their education in USA or Canada in 1998.

So, if you are a Filipino student studying international and need additional funding for your college education, start applying for an International Student Loan Philippines.

What is the interest rate for a student loan?

A student loan is useful in completing your college education when you are lacking the funds needed to attend your desired college or university. So, getting the best interest rate in a different bank and online lender is a huge benefit for the student so they can graduate. Below is a list of student loans with the interest rate they offer.

Paglaum Multi-Purpose Cooperative

Interest rate: 1, 15% per month

Loan amount: 5,000php – 100,000php

Payment terms: at least 3 years

Approval time: 5 – 10 days

Gata Daku Multi-Purpose Cooperative

Interest rate: 24%-30% APR

Loan amount: 1,000php – 15,000php

Payment terms: Up to 6 months

Approval time: 1 – 3 days

DBP bank

Interest rate: 0%-6% APR

Loan amount: 60,000php

Payment terms: at least 12 months

Approval time: 5 banking days

These are just a few of the banks and online lenders that offer the lowest interest rate possible for a student loan. The requirements of each lender differ depending on their terms and it also affects the amount of interest they can offer. You can get the lowest interest possible by presenting them a good credit!

How to apply for a student loan?

Check first if you are Qualified for a Student Loan

               Before availing of a student loan in the Philippines, check to see if you are qualified for their student loan. The qualifications may differ for each lender yet they all have a common ground. Check below if you qualify for a student loan.             

Qualifications:

–         The students are enrolled in a university. It may be a private, state, or TECH-VOC training center.

–         Should be a Filipino Citizen

Some lenders like a cooperative may require you to be their member first and have good credit. Overall, those are the common qualifications needed to avail of a student loan from different lenders in the Philippines.

Arrange your requirements and documents

Each lender has its requirements to apply for a student loan. A couple of lenders may require school documents or an interview while others need to answer their form to get the loan. But each of the lenders has its similarities, and below are the common documents and requirements you need to start loaning student loans in the Philippines.

The application form is given by the lender.

–         An account on the website of the lender

–         Enrollment Form with Student ID

–         Government-issued ID

Student loan online

So, how do you start applying for a student loan? Start by browsing student loans online only here at UpFinance. UpFinance is a single online loan application for all financial institutions in the country where you can discover student loans offered in the Philippines. By using only your phone or laptop at home, you can discover student loan banks near you where you can apply for a loan! UpFinance also has a built-in student loan calculator so you don’t have to worry about doing the math yourself to figure out how much you should borrow.

UpFinance does not only cover student loans but as well as other types of loans in the Philippines. Some of these are personal loans, car loans, home loans, SSS Salary loans, calamity loans, small business loans, and a lot more! We are partnered with large banks and private lenders because we ensure that you only get the best offer legitimate loan.

TIME BUSINESS NEWS

TBN Editor

Time Business News Editor Team