Suspension of student loan payments during disasters pushed in Congress
MANILA, Philippines — Students may find themselves not worrying about paying off their loans immediately in times of calamities if a bill authorizing a moratorium on student loans turns into law.
In filing House Bill 7279, Quezon City First District Rep. Arjo Atayde is pushing for a moratorium on the payment of student loans administered by higher educational institutions (HEIs).
The bill was filed last February 21 and entered first reading six days later under the Committee on Higher and Technical Education chaired by Baguio City Rep. Mark Go.
According to Atayde, once the bill turns into law, payment of all fees, charges and costs relating to student loans and technical-vocational training institutions (TVIs) or by the Unified Student Financial Assistance System for Tertiary Education (UNIFAST) during emergencies will be suspended.
The bill will cover all students residing in areas declared to be under a state of calamity or emergency, including pupils enrolled in state universities and colleges (SUCs), local universities and colleges (LUCs), private HEIs, and public and private TVIs.
“We have to find a way to help our students and their families when natural or even man-made calamities hit them hard. We just have to make everything easy for them including a moratorium on the payment of student loans,” Atayde said.
“It is a burden on a student and their family especially in difficult times like the aftermath of typhoons, fires and earthquakes, among other disasters,” he added.
The 32-year-old actor-congressman noted that in times of crisis, student loans will be the least prioritized by students as most of their expenses will most likely be allotted first to basic necessities.
He said the moratorium shall be effective for the duration of the state of calamity or emergency and for 30 days after its lifting, and that no penalties shall be collected on the deferred payments.
“To provide adequate relief and protection to our students in times of calamities and emergencies, this measure shall allow the deferral of student loan collections for a reasonable period during and after the onset of disasters,” said Atayde.
The neophyte lawmaker added that availing the moratorium shall not adversely affect the student’s eligibility for re-enrollment for succeeding semesters or terms, or even his eligibility for graduation.
“The proposed legislation doesn’t prevent public and private HEIs from implementing more favorable forms of payment relief or assistance to students affected by disasters, prohibiting students from voluntarily waiving the moratorium on student loan payments, or availing subsidies and assistance from the government,” Atayde said.
- Latest
- Trending