The Social Security Commission in its Resolution No. 323-s. 2012 dated April 30, 2012 approved the following guidelines in the implementation of the SSS Educational Assistance Loan Program:
B. ELIGIBLE BORROWERS
National Government (NG) : PhP 3.5 billion Social Security System (SSS) : PhP 3.5 billion Total Fund Allocation : PhP 7.0 billion
- SSS Members who have paid at least thirty-six (36) monthly contributions, three (3) of which should be within the last twelve (12) months prior to the date of application for loan;
- Members whose last posted Monthly Salary Credit (MSC) is PhP10,000 or below;
- Members who are up-to-date in the payment of salary/housing loan amortization. If with overdue amount, it must not exceed three (3) monthly loan amortizations.
C. COVERED BENEFICIARIES
- Legal Spouse
- Child of SSS Member (including illegitimate)
- Sibling of unmarried SSS Member (including half-brother/sister)
D. AMOUNT OF LOAN
- Degree course - Maximum of PhP15,000 per semester/trimester or actual tuition/miscellaneous fees, whichever is lower; rounded off to the next higher PhP100.
- Vocational/Technical course (minimum of 2 years) - Maximum of PhP7,500 per semester/trimester or actual amount of tuition/miscellaneous fees, whichever is lower, rounded off to the next higher PhP100.
E. INTEREST RATE AND PENALTYThe amount shall be funded on 50:50 basis from the NG and SSS.A member shall be allowed avail only once to defray educational expenses. No substitution of beneficiary shall be allowed.All semestral/trimestral releases shall be consolidated at the end of the one-year grace period after completion of the course, including the accrued interests from the actual dates of releases up to the date of consolidation. The consolidated amount shall be the principal loan to be amortized over the preferred term.
- NG Portion - zero interest
- SSS Portion - 6% interest per annum based on diminishing principal balance until the loan is fully paid. The consolidated loan (composed of semestral/trimestral releases plus accrued interests) will charged 6% interest per annum based on diminishing principal balance, until full payment of the loan.
A 1% penalty per month shall be charged for any unpaid amortization.
- SSS ID or two (2) valid IDs.
- Accomplished application form.
- Assessment/billing statement issued by the school of member/beneficiary.
Any excess on the tuition/miscellaneous fees shall be borne by the member/beneficiary.
G. MANNER OF RELEASES
- The check shall be payable to the school where the member/beneficiary is enrolled/applied for enrollment and shall be released to the member/beneficiary.
- Subsequent loan releases shall be made upon submission of another accomplished application form and corresponding assessment/billing statement from the school. Validation by the SSS may be done to ensure the continuous schooling of the member/beneficiary.
H. REPAYMENT TERMS
- Degree Course - The term is up to five (5) years and loan payment shall start after 18 months for semestral courses or 15 months for trimestral courses from the scheduled last release date for from the date of last release for those who will not avail of the subsequent releases.
- Vocational/Technical Course - The term is up to three (3) years and loan payment shall start after 18 months for semestral courses or 15 months for trimestral courses from the scheduled last release date or from the date of last release for those who will not avail of the subsequent release.
Any unpaid educational loan shall be deducted from the future benefit of the member.
I. ELIGIBLE SHOOLS
J. MISCELLANEOUS PROVISIONSThe school must be accredited by the Commission on Higher Education (CHEd) for degree courses and Technical Education and Skills Development Authority (TESDA) for vocational/technical courses.
- SS Number shall be issued to a non -member beneficiary for the purpose of tracking him when he gets employed, in the event of delinquency by the member-borrower.
- The SSS reserves the right to require additional documents as deemed necessary.