In response to the call of President Duterte for credit support to education in light of the economic effects of the pandemic, state pension fund Government Service Insurance System (GSIS) President and General Manager Rolando Ledesma Macasaet announced that GSIS is opening today a P20-billion study-now, pay-later loan program for the college education of GSIS members’ kins.
“We will allow GSIS members who have at least 15 years of government service to avail of an educational loan for their kins in college. The loan has a term of ten years but we will not require them to pay anything in the first five years. So they don’t have to worry about the tuition of their children for the first five years,“ Macasaet explained.
Under the GFAL-Educational Loan (GFAL-EL), the maximum amount that may be borrowed per academic year is P100,000 covering tuition and other school fees. The interest rate is only 8%.
A GSIS member may nominate up to two student-beneficiaries under the program. The two must be related to him or her up to the third degree of consanguinity or affinity and enrolled in a four-or five-year course in a private or public educational institution.
The loan proceeds will be directly paid to the school under the student’s account every semester or trimester until the beneficiaries finish their courses.
Members, including special members, who have at least 15 years of service may apply for the loan. They must not be on leave of absence without pay, have no pending administrative or criminal case, and have no past due GSIS loans (including housing loans).