GSIS' Loan for College Students Can Be Your Lifeline, Here's How to Apply

(SPOT.ph) The Government Service Insurance System is offering a new "study now, pay later" program that will allow its active members to avail of an education loan for their children or relatives pursuing a college degree as face-to-face classes resume.

Under the GSIS Education Loan program, active members who have rendered at least 15 years of service may apply for an education loan worth up to P500,000 which they could use to help finance the college education of their children or relatives.

According to the state insurer, the maximum loanable amount that members can apply for is P100,000 for each school year, or a maximum of P500,000 for a five-year college degree.

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Who are qualified to avail of the education loan?

GSIS active members who have children or relatives pursuing a college degree may avail of the education loan provided that they meet the following requirements:

1. At least 15 years length of service
2. Has paid the latest three monthly premium contributions for both Personal Share and Government Share at the time of application;
3. Is not on leave of absence without pay at the time of application;
4. Has no pending administrative and/or criminal case at the time of application;
5. Has no past due GSIS loan/s, including housing loan;
6. Agency status is not “suspended”; and
7. Has met the net take home pay requirement required under the General Appropriations Act.

Qualified borrowers can nominate up to two student beneficiaries who meet following requirements:

1. Must be a Filipino citizen and resident of the Philippines;
2. Must be related to the borrower up to the third degree of consanguinity or affinity
3. Must be enrolled in an undergraduate course with maximum study period of five years; and
4. Must agree to act as co-Maker on the loan upon reaching the legal age and in doing so, binds him/herself to the terms and conditions of the loan.

How to apply for the education loan?

Interested applicants must accomplish and secure the following requirements in applying for an education loan:

1. Accomplished Application Form (Annex A) filled out by borrower and co-maker (if applicable) and endorsed by the Authorized Agency Office.
2. Photocopy of the latest Tuition Assessment Form (Original to be presented).
3. Photocopy of school ID (front and back) with three signatures of the student affixed on the same page. If the school ID is not available, any valid IDs showing the date of birth, picture and signature of the student.

These requirements may be submitted through the eGSISMO account of the borrower, through the email address of the GSIS branch handling the member's account, or through the drop boxes at the said branch.

How to pay for the loan?

Qualified borrowers can pay their loans in 10 years, with a maximum grace period of five years. This means that loan repayment will only begin on the sixth year of the loan. Repayment has an interest rate of 8% per annum.