How to apply for SSS educational loan 101

Dear Parents,

Education is the best wealth you can give to your children. In such phase of life, your joy is seen when you can send them to school. Since the first ABCs song your child learns your heart jumps off with so much happiness. And since the first 1-10 counts he/she learned you’re so proud of it.

Dear Sons/Daughters,

Your parents are so proud of you for striving at school. From all the exams you try to pass and even failed, you are commended for not giving up. I hope so at this point you won’t give up. That diploma is your only gift to your parents and to yourself.

ang edukasyon ay kayamanang hindi mananakaw ninuman

Don’t get so teary-eyed yet. We’re not doing MMK here. We’re informing you about the educational assistance loans that the SSS (Social Security System) offers. And teaching you 101 on how to apply for the loan.

Who are the beneficiaries of the SSS educational loan?

1. The member-borrower

You member-borrower could of course avail the loan, an educational assistance for yourself. Do you not want it?

2. Siblings

(if the member is single or unmarried, he/she is entitled only up to 1 beneficiary)

So if your sister/brother is a member, you ask them to apply the loan for you. Now you know where to go. Alam na!

3. The legal spouse and children

(legitimate or illegitimate) — if the member is married he/she is allowed up to 2 beneficiaries

Well, if you and your spouse are members — you can avail a total of 4 beneficiaries. Nice, right? Meron na para kay ate, kay kuya, Kay bunso at Kay Juan.

Note: There are no substitution of beneficiary allowed.

How much could I avail from the loan?

The educational assistance caters degree courses and or technical vocational courses. So the loan amount you could avail depends upon what you take.

1. For Degree course – up to ₱20,000 maximum amount you could avail per semester/term or the full amount of tuition fees

So if your tuition for the semester is a total of 19,000 pesos, the loan amount will be 19,000 pesos. And or if your total semester is 25,000 pesos, the loan amount maximum you could get is 20,000 pesos. Di rin naman masama, ‘di ba? (Not bad at all, right?)

2. Technical /Vocational course (minimum of 2 years) – up to ₱10,000 maximum amount per semester/term or full tuition

The same scenario as with the degree courses’ example. You could only avail the maximum amount 10,000 pesos. Any excess to that or other miscellaneous fees will be shouldered by the beneficiary/member.

What are the qualifications/ eligibility?

  • The member should not have a monthly salary of more than 25,000 pesos per month.
  • The last month salary credit is 15,000 pesos or lower. You will know your monthly salary credit base on the SSS contribution table, the monthly contribution you are paying.
  • Should have at least 12 posted monthly contributions
  • And have at least paid 1 monthly contribution for the past 3 months — for example, this November you want to apply for the loan so you must have paid at least 1 monthly contribution within that past 3 months which is August, September, October.
  • Not delinquent in SSS housing loan or salary loan

What are the requirements to apply?

1. An accomplished/ filled up Educational assistance loan application form

There is a filled in the form needed for the school to fill up and sign.

There is a downloadable form online which you can download in this link. [SSS Educt form]

The eligible schools are those that accredited by CHEd ( Commission on Higher Education) and or TESDA (Technical Education and Skills Development Authority).

2. SSS ID or 2 valid ID’s

(bring your ID for validation only and secure a photocopy)

List of Valid ID’s:
-SS card
-UMID
-PRC card
-Passport
-Seaman’s book
-Driver’s License
-Company ID
-School ID
-Postal ID
-TIN Card
-[See full list here]

3. Assessment or statement of account from the school

4. Photocopy of SSS E1 for your beneficiary

Yes, your beneficiary needs to get his/her own SSS no. It is for the purpose of tracking the beneficiary when he/she is employed in the cases of delinquency of member-borrower.

5. Proof of your actual monthly income, any of this:

-Payslip ( original and secure a photocopy), if employed
-Certificate of employment and compensation, if employed
-ITR ( Income Tax Return), latest, BIR stamped, for self-employed
-Affidavit of income, notarized ( stating your income is not more than 25,000 pesos per month), for self-employed or voluntary

The manner of release is through the member/beneficiary and the check is payable to the school. If you’re qualified and received the initial loan. You still need to apply for the succeeding semester. Using this form Application for Subsequent Release of Educational Assistance Loan. [Download the PDF form here] And as well as an assessment/ billing from the school of the succeeding semester.

How much is the interest of the loan?

The loan is funded 50:50 basis by the Non-Government (NG) and the SSS. Zero (0%) interest for the amount funded by the NG and 6% interest funded by the SSS. So you will have 6% annual interest added to half of your loan amount. A 1% penalty per month for any unpaid amortization.

When will I start paying for the loan?

You’ll start paying after 18 months (for semesteral courses), or 15 months (for trimestral) and or 14 months & 15 days (for quarter term courses) from the date of the last loan check released. Terms of payment are 5 years for college students (degree courses) and 3 years for vocational students.

“Ang edukasyon hindi yan nanakaw sa ‘yo.”

Our 101 lesson ended here. If you avail the loan and or finished your studies through the EALProgram, let us know. So we can shoutout for you. Ready your Facebook graduation speech post. (Oh, handa mo na Facebook speech mo!)

“Kung marunong Kang rumespeto sa kapwa mo, daig mo pa ang edukado.”

 

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Image source: Pexels.com (with modifications)

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Junelyn Sarona

Junelyn Sarona is Self-Help's regular contributor! She finds writing as a great adventure and it is her passion. She joined Self-Help Pinoy Team because of her natural love to spread positivity to all Filipinos and Filipinos at heart.

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