P11.2B educational fund launched for SSS, GSIS members
MANILA, Philippines—Some 1.6 million members of the Government Service Insurance System and the Social Security System can now tap a P11.2-billion fund to help finance their higher education.
Budget Secretary Florencio B. Abad said Tuesday that President Aquino had approved the amount earmarked for the education assistance fund program (EAFP), which will be available to 1.4 million GSIS members and 200,000 SSS members.
Abad said these members may avail themselves of loans for four-year degree programs and technical or vocational courses.
“The Aquino administration understands that higher education is vital in strengthening the country’s work force,” he said. “The EAFP will also allow member-beneficiaries to develop talents essential to the workplace, as well as gain professional leverage in an increasingly competitive job market.”
Of the amount, P5 billion will come from the Department of Budget and Management.
Abad explained that the subsidy from the DBM was certified by the Bureau of Treasury as part of the excess dividend collections that government-owned or -controlled corporations remitted to the BTr.
Also, the GSIS and SSS will provide a combined P6.2 billion in counterpart funding.
Abad said that under the EAFP, P4.2 billion will go to GSIS members while P7 billion will be for SSS members.
He said the GSIS will extend a P4,000 loan per semester at 6 percent interest payable over five years for all beneficiaries.
At the same time, the SSS educational assistance package will make available P15,000 per semester for four-year courses.
The member can borrow up to a total of P120,000, which must be paid within five years starting from the year that he or she graduated.
SSS members who take vocational courses can borrow P7,500 per semester up to a total of P30,000, which must be paid within three years from graduation.
“Only SSS members with a monthly salary of P10,000 or less can avail themselves of the educational assistance initiative,” Abad said.—Ronnel W. Domingo
