To help facilitate the “Study now, pay later” program, the Land Bank of the Philippines (LandBank) provided a total of P350 million worth of loans to five private schools in the country.
The educational institutions have already received the loan, LandBank said.
Seven loan applications are in the pipeline, while seven school-borrowers are completing documentary requirements for the Access to Academic Development to Empower the Masses towards Endless Opportunities (ACADEME) loan program, LandBank said.
The 14 schools have yet to submit the loan requirements, while 34 others have indicated intentions to avail of the lending program.
Landbank has allocated P3 billion for the ACADEME lending program in a bid to provide funding for private junior and senior high schools that are accredited by the Department of Education (DepEd), the Commission on Higher Education (CHED), and the Technical Education and Skills Development Authority (TESDA).
Under the program, private education institutions may apply for the lending program by submitting the promissory notes of their students, or their parents for rediscounting or refinancing.
The schools may borrow up to 70 percent of the amount of the promissory notes on a per semester basis, although this still depends on the maximum amount based on the school’s net borrowing capacity.
The loan program, which is available until June 30, 2021, has a fixed 3-percent annual interest rate payable on the maturity of the sub-promissory notes, but this should not exceed three years.