Let’s face it: A lot of Filipino students miss important opportunities due to financial woes. While scholarships and grants are obvious remedies to students’ financial incapacities, most of them have rigorous academic requirements not everyone can satisfy.
Thankfully, there’s a more inclusive alternative: student loans.
In this guide, you’ll learn how this kind of financial assistance works. We’ve also listed down a few reputable organizations that offer student loans in the Philippines.
A student loan is an amount borrowed to pay for the cost of a college education. Also called an education loan, tuition loan, or tuition installment plan, this type of loan usually covers tuition and other school fees, books and supplies, allowances, student accommodations, and other school expenses.
Unlike scholarships and grants, student loans must be paid back in installments, plus interest, over the entire loan term. Some lenders allow student-borrowers to fully repay their loans after they graduate or find a job.
All these terms refer to financial aid for students to pay off higher education expenses. But although scholarships, grants, and student loans may sound the same, these three are entirely different.
Below, let’s differentiate each type of financial assistance for students in the Philippines.
In essence, scholarships are based on either the student’s academic performance or skills. For instance, Jennifer is a scholar because she is a member of the university’s volleyball team, while Gerald is a scholar because he maintains high grades in his subjects. You may have a scholarship during your first year in college, but you might lose this once your grades fall below the required rating.
Government agencies, LGUs, and higher education institutions usually sponsor scholarship programs.
A grant refers to the amount provided to a student in the form of cash. Grants may or may not be based on academic performance. Some sponsors consider the applicant’s economic status.
For instance, your child can have a grant of ₱50,000 worth of college funds. This may or may not cover the costs for the entire school year but may be used to pay for tuition and other school expenses.
Student loans are entirely different from grants and scholarships because the amount borrowed needs to be paid back. Whether it’s a government student loan in the Philippines or a loan from the bank, students should return the money according to the terms and conditions indicated in the loan agreement.
A tuition fee loan is one of the most practical options parents can consider for their kids' education. Here are a few reasons why:
Most student loans don’t check credit scores. This means you’ll have a higher chance of approval once you submit the correct documents and comply with the requirements.
If you plan to use a personal loan to fund education-related expenses, however, banks will still take credit score, among other things, into consideration.
Although some loans for students should be paid by the end of the current semester, most tuition loans in the Philippines allow borrowers to pay off the amount after graduation, when they’re already working.
Again, note that terms may differ for personal loans.
Instead of worrying about where to source funds, get peace of mind with student loans. Your child can focus on their studies and plan their career.
Student loans are not entirely harmless. While they offer great benefits, they can be more detrimental than useful if mismanaged. Here are some of the disadvantages of getting a student loan:
If you’re a self-supporting student who availed of a student loan, the said financial obligation can put you at a disadvantage fresh out of college. It will especially be a bigger burden to you if you struggle to find a job right away or get stuck in one that pays very little.
Interest may also accumulate if you don’t settle your debt at once. You might end up struggling to make ends meet or even fall into a debt trap if you don’t manage your finances well.
A ballooning debt can cripple a family financially and leave them with no choice but to live from paycheck to paycheck. Borrowers may find themselves cutting corners or delaying certain goals (e.g., home renovation, vacation, etc.) just to pay back the loan.
Defaulting on student or personal loans will significantly impact your credit score, which in turn will affect your ability to apply for credit cards, car loans, and mortgages down the line.
Wondering where to apply for a student loan in the Philippines?
Government agencies, banks, private lenders, and schools offer student loans. For this list, we’ve narrowed down your options to 14 educational loans with the best features.
Some of them charge low interest, reducing the cost of borrowing. Other providers offer an easy and quick online loan application process for students who need to pay their tuition urgently.
Here are the best student loans in the Philippines for students who need financial aid:
Key Features:
Eligibility and Documentary Requirements:
If your child’s tuition is expensive and you need a hefty amount to cover it, UnionBank’s Personal Loan[1] can help you out. Borrow up to ₱2 million, which you can use for school admission fees, and pay it back for one to five years.
One of the best things about this cash loan for students in the Philippines is that you don’t have to pledge collateral to get approved. Plus, processing takes as fast as five minutes.
Read more: Fund Your Big Dreams: How to Apply for a UnionBank Personal Loan
Key Features:
Eligibility and Documentary Requirements
Looking for a more convenient way to apply for a loan? UNO Digital Bank makes it possible with this personal loan for students. Just download the UNOBank app, create an account, and apply for your desired loan product.
Loan amounts start at ₱10,000, which should be enough to fund book expenses or supplement your existing budget for tuition. But if you’re looking for a bigger amount, you can borrow up to ₱500,000.
Key Features:
Eligibility and Documentary Requirements:
Launched in 2012, the Educational Assistance Loan Program (EALP) enables SSS members to borrow money to pay for their beneficiary’s college education.
Who is qualified for the SSS Educational Loan? Beneficiaries can be the member-borrowers themselves, their child (legitimate, illegitimate, or legally adopted), their legal spouse, or their sibling (for unmarried members only)—as long as they’re not full scholars enjoying free tuition and other school fees. They should be enrolled in any undergraduate course offered by schools accredited by CHED, TESDA, Civil Aviation Authority of the Philippines, and other government agencies.
The SSS Educational Assistance Loan is funded on a 50-50 basis by the National Government and the SSS.
Related: How to Apply for an SSS Salary Loan: A Step-by-Step Guide
Key Features:
Eligibility and Documentary Requirements:
There’s technically no such thing as a Pag-IBIG student loan. But since Pag-IBIG’s Multi-Purpose Loan or MPL covers a wide range of financial needs, you can use it to pay for your child’s tuition and other expenses like books and school supplies.
One of the best things about this loan is that the agency processes applications in as fast as two days.
Read more: Looking for a Short-Term Loan? Try Pag-IBIG’s Multi-Purpose Loan
Key Features:
Eligibility and Documentary Requirements:
Under its Ginhawa for All (GFAL) program, which aims to ensure the general welfare of people who work in the government, the Government Service Insurance System (GSIS) offers an education loan that essentially enables students to study now and pay later.
The loan is open for active GSIS members who have children and/or relatives pursuing an undergraduate course in a private or public university. Qualified applicants can nominate up to two beneficiaries.
Repayments begin only in the sixth year after loan approval, once the student beneficiaries finish their studies and start working.
Key Features:
Eligibility and Documentary Requirements:
LandBank’s Interim Students’ Loan for Tuitions Towards Upliftment of Education for the Development of the Youth (I-STUDY) is a flexible lending program for parents who have kids in preschool, elementary, high school, and college.[2]
The short-term loan is the credit facility for preschool, primary, and secondary students. If your kid is in tertiary level, get the term loan. You can use LandBank student loan proceeds to pay for tuition, enrollment-related fees, and electronic gadgets that can aid your child in distance learning.
Key Features:
Eligibility Requirement:
Must be a BPI credit cardholder of good standing
BPI credit cardholders may avail of a special installment plan (SIP) by visiting the nearest BPI branch. Application is relatively quick with a five-day processing period.
Avail of up to 100% of your credit limit. Plus, the interest rate is relatively low at 0.75% for up to 24 months. This means lower monthly payments on your end.
Don't have a BPI credit card yet? Compare your options and apply via Moneymax:
Related: How to Get a Personal Loan From BPI: Requirements and Process
Key Features:
Eligibility and Documentary Requirements:
Digido is an SEC-registered online lender that offers financial solutions to Filipinos with minimal documentation required. While it doesn’t have a student loan per se, it offers an easy cash loan to students who meet its eligibility criteria.
Since it offers a relatively low loan amount, use it to buy books, small gadgets, and other school requirements. To apply, just register for an account on Digido and complete your application from there.
Key Features:
Eligibility and Documentary Requirements:
Bukas is an education financing company licensed by the Securities and Exchange Commission (SEC) that provides student loans for college students in the Philippines. Students of Bukas’ partner schools, such as Ateneo de Manila University, FEU, CEU, Mapua University, and Lyceum of the Philippines University, may avail of a Bukas student loan.
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Eligibility and Documentary Requirements:
InvestEd is a social enterprise licensed as a lender by the SEC. You can use the InvestED student loan for different purposes, including tuition payments, gadget purchases (e.g., laptops, tablets, and smartphones for online classes), rent, board exam fees, school allowances, and payments for thesis-related expenses.
Key Features:
Requirements:
The student loan requirements aren’t specified on the website, but prepare the following at least:
Through the BlendPH Education Loan, students from BlendPH’s partner schools or training schools can borrow money to fund their educational needs. Working professionals who want to enhance their knowledge through training can also apply.
BlendPH directly forwards the loan proceeds to the partner or training school. This means that you won’t be able to use the money for other purposes.
Key Features:
Eligibility and Documentary Requirements:
UPLB students can apply for the SLB Program. Successful applicants are allowed to defer registration payment of up to 80% of the assessed fees during enrollment. Nevertheless, applicants can enjoy a 100% loan provided their request to avail of such is approved by the Chancellor.
This educational loan in the Philippines is open to all qualified undergraduate and graduate students. Students taking up non-degree programs are exempt from the program.
Key Features:
Eligibility and Documentary Requirements
DLSU offers a short-term interest-free loan facility called the Student Loan Program or SLP. The SLP is designed solely to cover the cost of tuition and fees for a given term.
Unlike other student loan programs, DLSU’s SLP doesn’t release the loan as cash. Instead, it applies the loan directly as payment for tuition and fees.
Undergraduate students may apply for the loan once every academic year. Applications for the succeeding terms will be subject to evaluation and availability of funds.
Key Features:
Eligibility and Documentary Requirements
International Student Loans is a financing platform and loan comparison tool that provides additional funding options to international students in the United States and Canada. Filipino students who meet the requirements can apply for international school loans to cover education-related expenses like tuition fees, books, insurance, transportation, room and board, and other school-related costs.
Learn how to get a loan for students in the Philippines so you can cover the cost of tuition and other school expenses:
Cash loans for students in the Philippines are not as well-known as other types of loans, so do your research on the different study now, pay later programs in the Philippines for college students.
To ensure you won’t be burdened with loan repayments you can’t afford, study each of your options carefully and then compare their features. Look for these features in particular:
Whether you love or hate math, you have to compute the monthly installment to know if you can afford it. Check the lender’s website for a sample computation of monthly amortization. If it’s not available online, inquire through the lender’s customer service hotline or social media account.
Most college students are considered of legal age, but some lenders require the guidance of a parent or an older relative to serve as the guarantor for the loan. Parents may not apply as the primary borrower, but they can be responsible for their children’s unpaid college loans, especially if they consented as a guarantor.
Generally, applicants should prepare these documents:
Once you have all the requirements ready, submit your application to the student loan provider. Depending on the lender, you can apply for a tuition loan either online or in person at the provider’s office.
Follow these tips to pick the right loan product and facilitate faster student loan approval:
Both parents and students can be easy prey for illegal lenders because of a lack of knowledge and experience. Never transact with lenders that charge a very high interest rate. Research the company's background and check if they have a lending license from the SEC.
Remember that some lenders check the loan beneficiaries’ grades to see if they’re capable of focusing on their studies and using the loan for educational purposes only. Your child’s academic performance can also be used to evaluate your sense of responsibility as a borrower.
Almost all transactions can be done online. To protect your privacy and personal information, make sure you’re transacting through a legitimate website. Some scammers may use your identity to make fraudulent transactions.
If you're a student, involve your parents or guardians in your decision-making. Discuss your plans to apply for an educational loan in the Philippines. Their wisdom and experience can help you make a good decision when it comes to selecting the right school, choosing the appropriate course, and applying for the best student loan with the lowest interest rates.
If you're the parent, it's better to still consult someone who's knowledgeable about student loans, such as a lawyer, accountant, or finance professional.
Don't let your financial situation stop your child from achieving their dreams. Legitimate student loans in the Philippines can help students continue their college education and focus on their studies instead of worrying about how to fund their education.
What to do if your student loan application gets rejected? For other funding options, check out the list of personal loans below. Compare your options and apply through Moneymax!
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