Tertiary education in the Philippines remains free for students enrolled in state universities or colleges, according to the Free Tuition Law. However, many young people apply for private institutions where the tuition fee keeps growing. In 2024, an average tuition fee for the most common courses, such as nursing, accountancy, or engineering, reached about PHP 100,000 (1), which is unattainable for many Filipino families.
The SSS Educational Assistance Loan Program (EALP) allows all eligible SSS members to receive a subsidized loan for education. Launched in May 2012, it has already helped thousands of students in the Philippines pay their tuition fees. In this article, weβll explain who can apply for this loan and how to submit your application in 2024 to receive an SSS student loan.
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The SSS educational loan is a personal loan with the sole purpose of paying for education. It is provided under favorable terms: the interest rate is below the market, and you do not have to pay it back until you graduate. This way, you can obtain a profession and apply your new skills to repay the loan.
Launched as a collaborative project of the Social Security System (SSS) and the National Government (NG), the SSS educational loan is intended to help people unable to afford college education. The funding is split evenly between the two institutions. The project has an ample yearly budget. That means several thousand students can take out a loan each year.
The ceiling loan limit depends on whether you are taking a degree course (longer and a bit more theoretical) or a vocational (shorter and more practical) one. The loan is granted in the beginning of the course based on the following calculation:
For example, you undertake a degree course (college or university), and your tuition fee for this semester is PHP 16,000. Then, the loan amount will be PHP 16,000. If the tuition fee is PHP 32,000, the loan will be at PHP 20,000. Please note that your college or university must be accredited by the government for you to claim the SSS educational loan.
You can see the total amount of a loan covering the entire course in the table:
| Course duration, years | Loan limit for a vocational course, PHP | Loan limit for a degree course, PHP |
|---|---|---|
| 2 (semester) | 40,000 | |
| 2 (trimester) | 60,000 | |
| 4 | 160,000 | |
| 5 | 200,000 |
The government doesnβt impose any interest rate on half of your loan, and the SSS charges you 6% per year for the portion financed by them. This means the average interest rate of a SSS educational loan comes to 3%.
There are, however, other charges you may possibly face, such as a 1% monthly penalty for any missed monthly payments.
All payments for your SSS educational loan start after your graduation plus a specific period of time after you receive the last check:
That ensures you can finish your course before you will have to repay the loan β you will have time to find a job that can sustain the monthly payments. The actual payment term, or the time period in which you have to repay the loan, mostly depends on the course duration.
There are three ways your payment term can be determined: schedules, preferred, or adjusted. However, the actual term is defined as the shortest of the three. Let us explain this in simple examples.
Scheduled repayment time limits for the SSS educational loan are set by the government as the following (3):
| Loan amount, PHP | Scheduled repayment term, years |
|---|---|
| 20,000 or less | 1 |
| 40,000 or less | 2 |
| 60,000 or less | 3 |
| 80,000 or less | 4 |
| more than 80,000 | 5 |
For example, if your overall loan amount equals PHP 75,000 and other repayment terms do not apply, you have at least 4 years to repay it.
The law allows you to set a custom repayment term for your loan. According to the rule of the shortest term of the three, your preferred term cannot be longer than your standard term. However, it is convenient if you want to repay your college loan sooner. So if you have a loan of 75,000 PHP, you can repay it in 4 years, which is the scheduled repayment term, or you can do that in 3 years, which will be your preferred repayment term.
Your preferred repayment term must be noted in your SSS educational loan form. Make sure to calculate the duration so that you can actually sustain the monthly payments. Remember that you wonβt be able to change your term later, and all missed payments will result in additional charges from the authorities.
This term is specific for loanees who will be at least 65 years old at the end of the installment term and is set at 1 year regardless of other conditions. Letβs say you have a loan of 90,000 PHP, so you will be expected to repay it in 5 years. In your SSS educational loan form, you indicated that you decided to repay it in 2 years. However, if you are 60 years old now, in 5 years you will turn 65, and the adjusted term of 1 year is applicable in your case. Since it is the shortest of the three, you will have to repay the entire sum in 1 year.
Only active paying SSS members or their beneficiaries are qualified for the loan. You need to register in the Social Security System, achieve a permanent status to qualify, and make SSS contributions. To do that, make sure to get an SS number online and upload documents proving your identity to the SSS website. Once the status is approved, you can apply for the SSS educational loan.
As an SSS member, you can take a loan for yourself or one of your beneficiaries, including:
If you are single, you can claim a loan for one beneficiary only. If you are married, you can put two beneficiaries in your application. Therefore, if you and your spouse are both SSS members, you can take an educational loan for four beneficiaries at once β for example, if you have four children. Note that once your form is accepted, you cannot change the beneficiary in the documents.
There are several specific requirements for an SSS member to be qualified for a loan, and the actual list of SSS educational loan requirements depends on whether the member takes its first educational loan or already has one.
To get your SSS educational loan form approved, you must meet the following criteria:
Your beneficiaries do not have to meet all these criteria. For example, your children can use your SSS membership without registering themselves.
If you already have an active SSS educational loan yet want to get another one, you must meet the following criteria:
Please note that if your monthly income increases, you will not lose the right to apply for another loan: the income is considered only the first time you apply.
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* Interest payments are approximate. The final loan amount and interest rate must be confirmed in your loan agreement after loan approval.
To apply for the SSS educational loan program in 2024, you must submit a list of documents depending on whether it is your first educational loan or not:
For first-time borrowers, the list of documents includes the following:
For additional applications, there are less documents required:
To receive an SSS educational loan, you must register as an SSS member and file an application with all the required documents or have another member file it for you. Wait for SSS to decide on your application. You will receive a notification via text or email. If the loan is approved, all you need to do is go to the branch where you applied and claim your check.
By law, you cannot apply for the SSS educational loan program online: you have to visit an SSS office in-person and bring all the documents with you. However, you can repay your loan via any online bank account or payment system (PesoPay, InstaPay, or some other platform) that supports such transactions.
SSS education loans may look very similar to so-called student loans offered by private lending businesses. But they have several key differences that can help you choose between one or the other.
| SSS EALP | Private loans | |
|---|---|---|
| Purpose | Only tuition/misc fees | Any educational expenses: tuition/mics fees, supplies, transport fare, gadgets, etc. |
| Maximum amount | PHP 200,000 for 5 years | Depends on the lender, but mostly about PHP 100,000 (4) |
| Repayment start | After graduation plus up to 18 months | Depends on the lender, but mostly after graduation |
The educational loans provided by SSS can prove very helpful. They make education more accessible for Filipinos, allowing you to acquire a valuable profession. Thanks to the funding from the government, they have adjustable repayment terms and relatively low interest rates.
However, you should be very careful when applying: carefully calculate your payments, weigh all the risks, and submit all documents correctly to use this opportunity to the fullest.
For a degree course, you can take up to PHP 200,000. For a vocational course, the limit is 60,000 PHP for a three-year trimestral course.
What is the interest rate of the SSS student loan?The EALP interest rate is 3%. Half of the loan is funded by the government with no interest rate, and SSS charges 6% on the other half.
Does my income matter to SSS when applying for the loan? Yes, your monthly income must be 25,000 PHP or less for you to be eligible for the loan. How long do I have to repay?The repayment period depends on the loan amount and your age. Basically, you have up to 5 years after your graduation depending on your course, but you can repay earlier. But if you will be 65 years old or above by
Can I apply for the SSS student loan online?No, you must visit your local SSS branch to submit documents. However, you can download the SSS educational loan form online.
Can I take the SSS educational loan to send a child to college?Yes, and if you are married, you can take the loan for two of your children. This way, if both you and your spouse are eligible for the loan, you can provide it for four of your children (5).
Can I use the SSS loan to pay for an apartment or school supplies? No, you can pay only for educational fees with the loan. Disclaimer and Editorβs noteDisclaimer: This article was written based on information available to the writer at the time of publication and the article was published for instructional, research, reference, and educational purposes only. The information and data used and disclosed in this article are publicly available and the writer or the Company does not claim any exclusive ownership or proprietary right over the information, data, literature or article sourced or obtained from publicly available sources. Some of the information, data, and/or materials cited in this article which were obtained from publicly available sources belong to the owner of the information or data, and the use thereof in this article are covered by fair use under applicable intellectual property laws.
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Note: The information presented in the tables is subject to change and users are advised to contact their chosen bank/ financial entity directly for the updated information.
