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Land Bank of the Philippines (LBP) is offering direct loans that would allow parents or guardians of enrollees to avail as much as P300,000 for their students.
In a statement released on July 9, 2020, LBP said that it set aside P 1.5 Billion in credit support for the Interim Student’s Loan for Tuitions Towards Upliftment of Education for the Development of the Youth, or the I-Study lending program.
“Through the I-Study lending program, we hope to help students finish their studies despite the difficulties they are facing amid the pandemic,” LBP President and Chief Executive Cecilia Boromeo said.
LBP said that the program would be open to open to parents and guardians of incoming students who are qualified under the admission and retention requirements of an academic institutions recognized or accredited by the Department of Education (DepEd), Commission on Higher Education (CHED) and Technical Education and Skills Development Authority (TESDA).
“Parents and guardians can borrow the amount of tuition equivalent to one school year or two semesters, or up to P 150,000 per student, but not more than P300,000 per eligible borrower,” LBP explained.
The lending program has an affordable fixed interest rate of five percent per annum for short-term loans for pre-school, primary and secondary students payable within one year. The same interest applies on term loans for tertiary students payable up to a maximum of three years.
LBP said that parents, guardians, etc should have an established repayment capacity, credit history and good credit standing.
Current beneficiaries of the Universal Access to Quality Tertiary Education Act of 2017 or any scholarship programs are no longer qualified.