The House Committee on Ways and Means has approved a tax provision of the proposed Student Loan Program Act that aims to help poor but deserving students finish their college and post-graduate degrees through the availment of loans.
Rep. Isidro Ungab (3rd District, Davao City), committee chairman, said the panel's support for the measure is a big victory for students who want to avail of loan programs to complete their college education or degrees.
This shall also ensure that education is made accessible to all according to Ungab.
Section 10 of the unnumbered substitute bill to House Bill 1876 provides that "For any loan procured under the Student Loan Program Act, lenders shall charge an interest based on the prevailing 91-day Treasury Bill rate at the time of release of the loan to be paid by the student borrower." It also provides that such loans shall be exempted from payment of documentary tax.
Prior to its referral to the Committee on Ways and Means, the bill was approved by the Committee on Higher and Technical Education chaired by Rep. Juan Edgardo Angara (Lone District, Aurora).
Rep. Rufus Rodriguez (2nd District, Cagayan de Oro City) assuaged the fear of finance officials that the loan program could saddle many students with loans to pay after graduation just like their counterparts in the United States.
Based on his experience when he took up his master's degree at the Columbia Law School in the US, Rodriguez said many of his classmates were scholars and grantees of federal loans.
"The repayment scheme is good. In fact, the program has been going on for the past 30 years. The proposed student loan program has to be implemented otherwise many of our deserving students won't be able to finish college simply because they don't have the money while scholarship fund from the government is miniscule. The CHED is only giving P5,000 per year or P2,500 per semester. How can our poor students finish college?," said Rodriguez.
The proposed Student Loan Program Act aims to assist eligible students to obtain post-secondary technical or vocational certificates or diplomas in tech/voc institutes and colleges, and post-graduate degrees in higher education institutions by encouraging banks and government financial institutions to lend money to eligible students to be repaid in installments, at least 24 months after the student graduates or leaves the educational institution.
The loan shall cover the cost of the entire program offered by the higher educational institution (HEI) or tech-voc institute, including, but not limited to, tuition and miscellaneous fees. Provided that adjustments shall be made in case of increase in tuition and miscellaneous fees. It shall likewise include an amount for cost of attendance covering necessary expenses of the student for books, food, transportation, board and lodging, and a reasonable allowance for projects and other school requirements.
The substitute bill is authored by Reps. Roman Romulo (Lone District, Pasig City), Angara, Emil Ong (2nd District, Northern Samar), Mariano Piamonte, Jr. (Party-list, A Teacher), Eulogio “Amang†Magsaysay (Party-list, AVE), Pedro Romualdo (Lone District, Camiguin), Eduardo Gullas (1st District, Cebu), Cesar Sarmiento (Lone District, Catanduanes), Florencio Flores, Jr. (2nd District, Bukidnon), Raymond Democrito Mendoza (Party-list, TUCP), Sigfrido Tinga (2nd District, Taguig City) and Pryde Henry Teves (3rd District, Negros Oriental), and co-authored by members of the Committee on Ways and Means. - Rowena B. Bundang, MRS-PRIB
