The SSS Educational Loan is funded by the National Government and Social Security System on a 50:50 basis. Any excess on the tuition fee and miscellaneous expenses shall be borne by the member/beneficiary.
What are the qualifications?
- The SSS member should have an actual monthly salary that is not more than 25,000 pesos per month.
2. The SSS member should have a last SSS monthly salary credit is 15,000 pesos or lower.
3. The SSS member should have paid at least 12 monthly contributions.
4. The SSS member should have paid the monthly contribution for at least 1 of the past 3 months.
5. The SSS member should be not delinquent in his/her outstanding SSS housing loan or salary loan.
How much can we loan under the SSS Educational Loan?
The amount of loan depends if you are taking a degree course or vocational.
- Degree Course – Maximum of Php.20,000.00 per semester/trimester/quarter term or full amount tuition/miscellaneous fees, whichever is lower, rounded off to the next higher Php.100.00.
- Vocational/Technical Course (minimum of 2 years) – Maximum of Php.10,000.00 per semester/trimester or full amount of tuition/miscellaneous fees, whichever is lower, rounded off to the next higher Php100.
For example, if the beneficiary is a college student and his school fee total for the current semester is 18,000 pesos, your loan amount will be 18,000 pesos. If his school fee total is 35,000 pesos, your loan amount is only 20,000 pesos.
It is important also that the school must be accredited by the Commission on Higher Education for degree courses and Technical Education and Skills Development Authority for vocational/technical courses.
What is the interest rate for the loan?
There is 0% interest for the amount funded by the government and 6% annual interest for the amount funded by SSS. This means 6% annual interest will be added only on the half of your loan amount.
Who are the allowed beneficiaries for the SSS Educational Loan?
- The member-borrower
- Siblings (including half-brother/sister), If the member-borrower is single or unmarried, he/she is only entitled to apply for only one beneficiary.
- If the member-borrower is married, the legal spouse and children (including illegitimate). Married member-borrower is allowed to avail up to two (2) beneficiaries who shall be any of the following: the member himself/herself, spouse, and children. If your spouse is also an SSS member and he/she is also qualified for this loan, you can apply for 2 beneficiaries each so that you can support a total of 4 beneficiaries, for example, your 4 children.
Once your application is approved for yourself or your beneficiary, you can no longer substitute another beneficiary.
What are the documents requirements required to apply for SSS Educational Loan?
- Filled-up and signed SSS Educational Loan application form.
Note: There is a portion in the loan application form which the school needs to fill up and sign.
- Member-borrower’s SSS ID or 2 valid IDs
- Photocopy of your SSS ID or 2 valid IDs
- Assessment or billing statement from the school
- Xerox copy of the stamped SSS E1 form of your child, spouse or sibling. (The beneficiary- child or sibling needs to get his/her own SSS no.)
- Proof that your actual monthly income is not more than 25,000 pesos. The Proof of Income can be one of these documents:
– Pay Slip (original and photocopy), if employed
– Pay envelope (original and photocopy), if employed
– Certification of Income from Employer, if employed
– Latest BIR-stamped ITR, if self-employed
– Your notarized Affidavit of Income, stating that your actual monthly salary is not more than 25,000 pesos, if self-employed or voluntary
Once qualified and have received your initial educational loan, you need to file for another loan application on the succeeding semester using another form titled Application for Subsequent Release of Educational Assistance Loan.
When do I start paying for the Loan?
You’ll pay your loan in installments starting after 18 months from the date of release of last loan check. Payment term is up to 5 years for college students and up to 3 years for vocational students.
Disclaimer: The Educational Loan program has a set budget only in which limited numbers only can be accommodated in the program. According to SSS, interested applicant to the SSS Educational Loan Program can still apply however they will be waiting for other slots to be freed up (i.e. prior beneficiaries have already graduated and payment for the Education Loan has started).
Source: SSS Inquiries
Minor edits have been done by the Iskolar Creatives editors.
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