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Student Loan

• PGMA Higher Education Loan Program
• SAFE 4 SR

 

PGMA Higher Education Loan Program

Objectives

The Program aims to:

1. Provide assistance to financially needy 3rd year, 4th year and graduating college students and to qualified students whose allowance for tuition is delayed due to force majeur or other unforeseen / unavoidable circumstances;
2. Raise the level of efficiency and effectiveness in the management and administration of a student loan program by involving private higher education institutions as government partner-implementers.
   

Management and Administration

A. STUDENT FINANCIAL ASSISTANCE UNIT

1. The HEI shall establish a Student Financial Assistance Unit (SFAU) responsible in the management and administration of the Program, such as in:

1. Screening and processing loan applications;
2. Granting loan to qualified student borrowers;
3. Collecting loan repayments;
4. Preparing reports as required by CHED.

2. The HEI shall adopt its own operating procedures in the management and administration of the Program

B. REVOLVING TRUST FUND

1. The amount assigned and transferred by CHED to the HEI shall constitute the revolving Trust Fund of the Program;
2. The amount derived from loan repayments of borrowers, which include payment for the principal and, at the option of the HEI, part of the interests, shall also go to the revolving Trust Fund;
3. The HEI shall open a Trust Account in a government bank where the funds for the Program shall be deposited;
4. The amount in the revolving Trust Fund shall be used for the continuous implementation of the Program.

C. TYPES OF LOAN

1. Short-Term Loan – the loan is payable with a period of three (3) months to be availed of by qualified students who cannot possibly pay their tuition on time because of force majeur;
2. Long-Term Loan – the loan is payable within a period of five (5) years after graduation of the borrowers to be availed of by qualified students at the 3rd, 4th, and 5th year curricular years levels.

D. LOANABLE AMOUNT

1. The loanable amount shall cover TUITION FEE only;
2. The maximum loanable amount shall be determined by the HEI; Provided, it shall not exceed the amount billed by the school for the TUITION FEE during the semester.

E. ELIGIBILITY CRITERIA

For Short-Term Loan

1. The loan borrower is a bonafide student of the HEI
2. The loan borrower cannot possibly pay on-time the tuition for the semester due to force majeur;
3. The combined income of parents of the loan borrower is not more than P200, 000.00 per year.
4. Other eligibility criteria as the HEI may deem necessary.

For Long-Term Loan

1. The loan borrower is a bonafide student of the HEI
2. The loan borrower must either be at the 3rd, 4th or 5th curricular level in his/her course;
   3. The combined income of parents of the loan borrower is not more than P200, 000.00 per year.
3. Other eligibility criteria as the HEI may deem necessary.

F. REPAYMENT PERIOD

1. For Short-Term Loan, the amortization period shall not be more than three (3) months;
2. For Long-Term Loan, the amortization period shall not be more than five (5) years after graduation.

G. INTEREST RATE

The Interest rate on the loan shall not be more than six percent (6%) per year, to commence as soon as the amount is released to the borrower.

E. REPAYMENT SCHEME

The HEI shall formulate its own repayment scheme best suited to the socio-economic milleu of the school.

F. ADMINISTRATIVE AND OTHER INCIDENTAL EXPENSES

The HEI may use the Interest from the loan to cover its administrative and other incidental expenses relative to the implementation of the Program.

G. GUARANTOR / CO-BORROWER

The HEI has the prerogative to require a guarantor / co-borrower for the loan. The HEI shall devise a scheme to assure repayment of loan borrowed and to keep track the whereabouts of loan borrowers.

>>Safe Loan Form

 

What is SAFE 4 SR?

SAFE 4 SR or the Students' Assistance Fund for Education for a Strong Republic is an interest-free student loan program of President Gloria Macapagal-Arroyo for 3rd, 4th and graduating college students.

What are its purposes?

The SAFE 4 SR aims:

• To provide assistance to a minimum of 100,000 needy 3rd, 4th, 5th, and graduating college students through an easily accessible student loan;
• To raise the number of Filipino graduates in priority courses as well as to produce a top-caliber workforce in the country;
• To address the problem on the increasing number of college drop-outs due to financial difficulties; and
• To encourage Filipinos to get a college degree (and not be satisfied with an elementary or high school education).
  What does this loan cover?

The student loan can be used to cover tuition, books, course projects, thesis papers, board and lodging bills, graduation fees and other valid educational expenses.
Who is qualified for this program?

The applicants should meet the following criteria:

1. Should be a bona fide in CHED-recognized Higher Education Institutions in 3rd, 4th,
   5th or graduating year;
2. Should have a passing weighted average from the previous semester;
3. Should not be a beneficiary of other scholarship programs of the government;
4. Should have the intention of using the amount solely for educational expenses; and,
5. Should be willing to comply with the program's rules and regulations.
   

How much can one borrow?

If YOU qualify for the loan, you can borrow as much as P8, 000 per semester. However, it is up to the Student Financial Assistance (SFA) Unit of your school to determine the amount you actually need to defray your expenses.

IMPORTANT: Your school should be a CHED-recognized Higher Education Institution and should be willing to perform the functions and responsibilities as a partner institution.

How is the loan paid back?

SAFE 4 SR has no interest rates. YOU can start paying the borrowed amount not later than two (2) years after graduation. Loans may be paid every two weeks or monthly installments to be deposited in the program's bank account.

• Loans below P 4,000 are payable within five (5) years; and
• Loans from P4, 000 to 8,000 are payable within ten (10) years.

How do I avail of SAFE 4 SR?

• Contact your school's Student Financial Assistance (SFA) Unit;
• Ask for guidelines and the application form;
• Inform your SFA officer on the amount you wish to borrow. The SFA officer will determine if said amount is reasonable and necessary; and
• After you submit the necessary requirements, you will be informed by your SFA officer o the result of your application.

What are my responsibilities as SAFE 4 SR recipients?

• Pay the amount borrowed under the program within the allotted time period;
• Notify the school within 30 days should you:
• - Change your address or residence
  - Start work
  - Transfer / change jobs
  - Get married (change in civil status)
• Plant a tree in the area specified by the school in line with the government's tree-planting program; and
• Be an active partner in the government's vision to build a Strong Republic.

When will the program start?

The program will take effect beginning the 2nd semester of school year 2003-2004 and shall continue to be in effect until the program is terminated due to exhaustion of funds.

>>SAFE4SR Loan Application Form

 

For queries, visit the Student Affairs Office.