Bill to strengthen student loans

MANILA, Philippines — The House Committee on Higher and Technical Education is due to come up with a substitute bill that seeks to strengthen student loan programs to assist poor students.

The technical working group of the House panel, chaired by Aurora Rep. Juan Edgardo Angara is finalizing the bill, which is a consolidation of 12 measures. These include House Bill 43 authored by Cagayan de Oro Rep. Rufus Rodriguez; HB 670, San Juan Rep. Joseph Victor “JV” Ejercito; HB 1610, Zambales Rep. Ma. Milagros “Mitos” Magsaysay; HB 1820, Pasay Rep. Emi Calixto-Rubiano; HB 1247, Las Pinas Rep. Mark Villar; HB 1331, Alagad party-list Rep. Rodante Marcoleta; HB 2097, Antipolo Rep. Romeo Acop; and HB 3719, Cavite Rep. Roy Loyola. These measures provide the creation of a national student loan program.

While, HBs 153, 242 and 365 call for the strengthening of the “Study-Now-Pay-Later” plan. They were authored by Parañaque Rep. Edwin Olivarez; Angara; and Marikina Rep. Marcelino Teodoro.

HB 499, authored by Angara provides that rendering teaching service will serve as payment for educational loans, which will drawn from public funds, including subsidies for students of state universities and colleges.

“It’s undergoing consultations with the technical working group of the higher education committee,” Angara told the Manila Bulletin.

Rodriguez, author of the HB 43, pressed on the need to craft a new law, citing that the older laws providing loans to students seem to be “ineffective.”

“The youth should be given opportunities to finish school,” he said.

Among the agencies which already expressed their support to the pro-students bill were the Department of Finance (DoF), Technical Education and Skills Development Authority (TESDA), Social Security System (SSS), and the Government Service Insurance System (GSIS).

In a recent committee hearing, TESDA representative Susan De La Rama suggested that the program should also be made available to students in technical-vocational education and training as well.

SSS representative Luz Generoso also offered the agency’s support in the collection of loan payments, saying that they could track beneficiaries through their employment records.

GSIS senior vice president Nora Saludares said the imposition of a strict loan payment condition by requiring a co-maker or a loan redemption insurance is needed to ensure that the program will not be abused.

A-Teacher party-list Rep. Mariano Piamonte Jr. called on Congress to revisit the existing law on student loan program instead of legislating a new law, expressing concern that it will not be efficiently implemented.

He said should the Congress decides to pass the proposed Act, it must ensure that the student loan program will be made available to students who are academically qualified and who pursue priority programs or courses that are in demand in both local and foreign markets.

DoF’s Special Studies Division Officer Ricardo Toquero has recommended the strengthening of the existing student loan programs. –CHARISSA M. LUCI, Manila Bulletin