GSIS opens ₧20B study-now, pay-later loan window
Gov ernm ent Service Insurance System President and General Manager Rolando L. Macasaet announced that the state pension fund is opening a P20-billion study-now, pay-later loan window 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,” Macasaet said during a radio interview. “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.”
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 8 percent.
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 GSIS said in a statement.
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).
They must also meet the required net take-home pay of P5,000 after deduction of their monthly premium contributions and loan amortizations, and their agencies must not be on suspended status.
“The loan has an insurance cover to protect the interest of the borrowers and their student-beneficiaries. Thus it will be deemed fully paid in case the member or the student dies or becomes permanently and totally disabled,” Macasaet said.
The documentary requirements for GFAL-EL are: (1) properly filledout application form signed by the member-borrower and duly indorsed by his or her agency’s authorized agency officer; (2) photocopy of the latest tuition fee assessment form; (3) photo copy of school ID (front and back) with three signatures of the student-beneficiary. If the school ID is not available, the borrower may submit any valid government-issued ID with photo, signature and date of birth of the student. If the member has a second student-beneficiary, the same documents are required to be submitted.