Government releases P3.5B for SSS education aid-A A +A
Monday, January 7, 2013
THE Department of Budget and Management (DBM) released on Monday some P3.5 billionon to fund the college education of members and beneficiaries of the Social Security System (SSS).
The fund release was part of the National Government’s P5-billion counterpart funds under the GSIS-SSS Educational Assistance Fund Program (EAFP).
The remaining P1.5 billion has been released to the Government Service Insurance System (GSIS).
“With this fund release, the SSS can extend financial aid to qualified members who wish to obtain their college degrees or finish tertiary schooling. Member-beneficiaries can thus hone their talents in preparation for sustainable employment and compete effectively in the job market,” Budget Secretary Florencio Abad said.
Under the EAFP, qualified SSS members may apply for loans amounting to P15,000 for four-year degree courses per semester, and P7,500 per term for technical/vocational courses.
The total amount that can be borrowed for a four-year degree courses is P120,000 with an interest rate of six percent. Members would have to repay the loan for five years which will begin one year after graduation.
For technical/vocation courses, the total loanable amount is P30,000, also with an interest rate of 6 percent. The repayment period is three years, which will also start one year after graduation.
“The employment market is likely to pick up further this year, with more opportunities opening up for our college graduates. We want to respond sufficiently to that demand by giving more Filipinos a chance to secure their tertiary degrees and become actively involved in shaping our growing economy,” Abad said.
The project is chargeable against the unprogrammed fund under the 2012 General Appropriations Act. (Jill Beltran/Sunnex)