Chiz says law on loan moratorium to provide relief to students hit by calamities
December 6, 2024
CHIZ SAYS LAW ON LOAN MORATORIUM TO PROVIDE RELIEF TO STUDENTS HIT BY CALAMITIES
Senate President Francis "Chiz" G. Escudero said the legislation that will allow student loan payment moratorium during disasters is a timely intervention from the government to help curb the cases of enrollees dropping out of school due to financial constraints.
Escudero made the statement after President Ferdinand Marcos Jr. signed on Friday, December 6, 2024, Republic Act Number 10277 or the Student Loan Payment Moratorium During Disasters and Emergencies Act, which is meant to provide a lifeline to students, particularly those from underprivileged families, to continue their studies even after a disaster.
"We are currently experiencing a higher frequency of weather disturbances that are more intense and destructive. We always see the destruction caused in the aftermath of these calamities, but we often miss the other victims, the students, many of whom end up sacrificing their future because of these disasters," said Escudero, co-author and sponsor of Senate Bill No. 1864 when he was chair of the Committee on Higher, Technical and Vocational Education.
The law provides for a moratorium on the payment of what tertiary students financially owe their schools when these are within the jurisdiction of a national or a local declaration of a state of calamity.
Included are all fees, charges and costs relating to the student loans incurred for higher education and TVET programs.
The obligations include those administered by the higher education institutions, technical-vocational institutions or by the Unified Student Financial Assistance System for Tertiary Education (UniFAST) Board, the Commission on Higher Education or any other government agency or instrumentality.
"Just to be clear, this is not loan forgiveness but a payment freeze for the duration of the declaration of a state of calamity or emergency and for another 30 days after its lifting," Escudero said.
The law ensures that students who will avail of the moratorium on loan payments will not affect their eligibility for re-enrollment or graduation.
No penalties or interest would be applied on the deferred obligations and the schools are also encouraged to provide favorable payment terms or other forms of aid to the affected students, according to the law.
"This law adheres to the spirit of 'damayan' among Filipinos. It is the obligation of the government to ensure that each and every child has access to education and to find ways to remove any obstacles that stand in the way of her or his full education," Escudero said.
