How to Avail of the SSS Educational Loan?

Education is very important because it can take you to different places. Education is something that cannot be taken from you.

If you are educated, you can express your opinions more confidently, you can inspire others and you can help your family because of your higher chances of employment or business opportunities.

If you are currently a college student or planning to enroll in college soon, but have limited funds, this is your chance to take advantage of the SSS Educational Loan Program.

Known as EALP, the Educational Assistance Loan Program of the Philippine Social Security System aims to help students to go to college by providing financial assistance to pay for his or her tuition fee and other miscellaneous expenses.

It may not be a huge amount but it would truly help those who are in need.

Who are ELIGIBLE to borrow from the EALP of SSS? 

The EALP is open to both new applicants and existing EALP member-borrowers.

A. For New or Initial Applicants, the SSS member-borrower must meet the following eligibility requirements:

  • Age – below 60 years old
  • Monthly Income – P25,000 or below (monthly basic salary)
    • SSS Contributions – At least 36 posted monthly contributions, 6 of which are posted within the last 12 months prior to the month of filing the EALP application.
  • No overdue loans with the SSS

Note: Applications for EALP will be on a queue system and the release of loans will be subject to funds availability.

B. For existing EALP member-borrowers, you must meet the following eligibility requirements:

  • SSS Contributions – 6 posted monthly contributions within the last 12 months prior to the month of filing the subsequent EALP application.
  • No overdue loans with the SSS

Who are the Covered Beneficiaries of the EALP?

  • Member-borrower
  • Legal Spouse of member-borrower
  • Child of member-borrower (legitimate, illegitimate or legally adopted)
  • Sibling of member-borrower, if civil status is single (including half-brother or half-sister)

Note: Substitution of the beneficiary is strictly not allowed to avail of the EALP.

Each eligible member-borrower can avail of one beneficiary only for the EALP, but once the loan has been fully paid for the first beneficiary, he may reapply for a new beneficiary of EALP.

In short the member-borrower cannot apply a new beneficiary to avail of the EALP if he is still paying for the existing beneficiary’s educational assistance loan.

For Full Scholars who have zero tuition or miscellaneous fees or assessment balance, you will be exempted under the EALP.

What are the Requirements to Avail of Educational Loan (EALP)?

A. For Initial EALP Applicants

  • Valid ID or Documents
  • Accomplished Initial EALP Application form
  • Current school’s assessment or billing statement
  • Proof of Monthly salary/income of member-borrower
  • Proof of relationship to beneficiary

B. For Subsequent EALP Applicants

What Courses and Schools are Eligible for EALP? 

Any undergraduate course that is offered by universities and colleges that are recognized by the following are eligible for the Educational Assistance Loan Program of SSS:

  • CHED (Commission on Higher Education) – for degree courses
  • TESDA (Technical Education and Skills Development Authority – for vocational or technical courses
  • CAAP (Civil Aviation Authority of the Philippines) – for aviation-related courses
  • Institutions duly recognized by the Philippine Government

How much can you get from the Educational Loan? 

  • Degree Course – Maximum of P20,000 per semester (trimester or quarter) or net tuition/miscellaneous fees or assessment balance on a cash basis, whichever is lower.
    • 4-year degree program – P160,000 full allocation (maximum number of availments shall be 8 semesters or 12 trimesters or 16 quarters)
    • 5-year degree program – P200,000 full allocation (maximum number of availments shall be 10 semesters or 15 trimesters or 20 quarters)
  • Vocational or Technical Course (2-year course) – Maximum of P10,000 per semester (trimester or quarter) or net tuition/miscellaneous fees or assessment balance on a cash basis, whichever is lower.
    • Semester Program – P40,000 full allocation (maximum number of availments shall be 4 semesters)
    • Trimester Program – P60,000 full allocation (maximum number of availments shall be 6 semesters)

The National Government (NG) and the Social Security System (SSS) will fund the loan payment on a 50:50 basis. The member-borrower or beneficiary will shoulder any amount that exceeds the tuition fee and other miscellaneous expenses.

sss-loan

SSS Educational Loan Interest Rate and Other Charges

  1. NG (National Government) portion has ZERO (0%) interest
  2. SSS (Social Security System) portion has 6% interest per annum (based on diminishing principal balance until fully paid).
  3. Consolidated Loan (this is composed of all loan releases plus accrued interests) – SSS portion bears 6% interest
  4. Maintenance Charge is 2% of the consolidated loan balance
  5. Penalty is 1% per month for any unpaid amortization
  6. P300 service fee for any request for replacement of EALP check.

How will the loan be released? 

The check is payable to the school of the beneficiary. It shall be picked up by the SSS member-borrower of his/her authorized representative at the SSS branch where the Educational Plan application was filed or processed.

Subsequent loan releases (checks) shall be made upon submission of another EALP application every school term until the completion of the course or until the allocated loan amount is exhausted.

What are the terms of payment for the Educational Loan? 

a. The repayment of the SSS Educational Loan starts on the month following the consolidation of the EAL

  • after 18 months for semestral programs
  • after 15 months for trimestral programs
  • after 14 months and 15 days for quarter programs

b. The payment term is up to 5 years for Degree Course and 3 years for Vocational or Technical Course.

Below is the scheduled term based on the principal loan:

  • P20,000 or below – 1 year
  • P20,001 to P40,000 – 2 years
  • P40,001 to P60,000 – 3 years
  • P60,001 to P80,000 – 4 years
  • More than P80,000 – 5 years

c. Any unpaid Educational Assistance Loan balance will be deducted from the future benefit of the member.

How to Pay the SSS Educational Loan? 

You may pay your SSS Educational Loan through any of the following options:

  • SSS Branch Tellering facility or cashier
  • SSS accredited banks
  • Salary Deduction by employer

If the beneficiary of the Educational Loan is of legal age and his/her loan becomes past due for 6 months, his/her employer (if any) shall be billed.

The beneficiary of legal age, shall sign on the EALP Application to bind him/her as co-borrower to the SSS Educational Loan Program. Therefore, he shall be jointly liable to pay all outstanding EALP obligation.

Source: This article is based from Circular No. 2017-005 with the subject, Revised Implementing Guidelines for the Educational Assistance Loan Program (EALP) which was signed on May 25, 2017.

Conclusion: 

The Educational Assistance Loan Program (EALP) of the Social Security System is really a big help especially to those who really wanted to go to college but have limited funds.

If you are one of them or you know someone who will benefit from this program, please share this article with him or her.

Remember, lack of money or funds should not be a hindrance to going to college and achieving your dreams. There are many ways to find educational assistance and this EALP is one of them.

You just have to keep on chasing after your dreams and do your part as a student to achieve them. Nothing is impossible to the one who has clear visions and who takes massive actions.

Click here to read: SSS Salary Loan Requirements and Application

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