Sen. Sonny Angara files a bill on student loan program

Sen. Sonny Angara, in his new bill, aims to give eligible students a chance to pursue and finish their education. Photo: Facebook Page of Sen. Sonny Angara

To help more Filipinos finish their education.

This is the main goal of Senator Juan Edgardo “Sonny” Angara, a known advocate of educational reform, in filing Senate Bill No. 2169.

“Despite the National Government’s mandate to make education accessible to all Filipinos, the reality is that many impoverished Filipino families remain unable to send their children to school,” Angara, chair of the Senate Ways and Means Committee said.

A study conducted by the Commission on Higher Education (CHED) found that only 60,000 students in 2011 or about two percent of approximately 2.7 million students were assisted by the government’s  student financial assistance programs.

“Even with the government’s existing programs, it is apparent that available financial assistance to students are not enough to cater to those who are in need,” he said.

The bill aims to establish a voluntary student loan program to be administered by private banks and government financial institutions (GFIs). Eligible students will be granted financial assistance so they can pursue and finish their post-secondary technical-vocational, college and post-graduate education.

It also states in the bill that the banks and GFIs should allot a portion of their loanable funds for student loans.

The bill also facilitates a flexible paying scheme, as the students who were granted loans could repay the amount in an installment basis after finishing their studies.

With the approval of the Bangko Sentral ng Pilipinas (BSP), banks that granted student loans could receive incentives.

“This is envisioned to complement the existing financial assistance programs being implemented by the government, to help meet our students’ needs,” Angara said.

With report from Manila Bulletin