Monday, October 22, 2012

SSS Educational Loan 2012

 Update December 17, 2013:

Sad to say, SSS has announced that it has suspended the SSS Educational Loan Program for first-time applicants.  Why?  Because the 7-billion-peso budget for the program has been fully allocated to the first 59,600 students whose initial loan applications were approved and who have started receiving their educational loans from SSS.

In short, the 7 billion pesos allocated for the program have been fully spent. All the funds have been allocated to the 59,600 students. The only applications that will be accepted by SSS are the Subsequent Educational Loan applications from the 59,600 students.

SSS says that it will reopen the program once new funds are accumulated from loan repayments. If there are no new funds that will be put into the program, then it will take several years before new initial loan applications can be accepted. It will take several years before the first batch of borrowers are able to pay their loans.

If there will be students among the 59,600 already enjoying the SSS Educational Loan who will stop availing of their loan allocations, then there will be some money for some new first-time loan applicants in the waiting list.
Related Note:
If an SSS member retires and can no longer apply for a Subsequent Educational Loan for his or her beneficiary, another member qualified under the loan program can apply for the beneficiary. The beneficiary's unmarried sibling, or other parent can take over. 

Update April 14, 2013:

SSS has increased the loan amount and improved the rules so that more people can get qualified for the loan.

You can apply for this SSS educational loan for:
  • yourself
  • or your spouse
  • or your child
  • or your brother or sister (only if you are single)
You can use this loan for a four-year or five-year college course or a two-year or three-year vocational or technical course. The loan check will be payable to the school.

Who can avail of this SSS educational loan? 

You can apply for this loan if:
  • You have paid at least 12 monthly SSS contributions. 1 monthly contribution should have been paid within the last 3 months prior to loan application.
  • Your latest monthly salary credit is not more than 25,000 pesos.
  • You are not delinquent in paying your salary loan or housing loan. Your unpaid monthly payments should not exceed 3.
How much can you loan?

College course -- up to 20,000 pesos per semester
Vocational or technical course -- up to 10,000 pesos per semester

What are the documents required?
  1. Loan application form (filled up and signed)
  2. SSS ID or 2 valid photo IDs (bring xerox copies)
  3. Assessment or billing statement from the school
  4. You child or beneficiary's SSS Number: Submit a xerox copy of your child or beneficiary's stamped SSS E-1 form (if you are applying for your child or beneficiary)
  5. Proof that your monthly income does not exceed 25,000 pesos:
- If employed, payslip or pay envelope for 1 month, or certificate of income from employer
- If self-employed, ITR
- If voluntary, Affidavit of Income

Note: There's a portion in the application form that needs to be accomplished by the school.
You need these data items:

 - School Code
 - Name of Student
 - Name of Course
 - School year
 - Level
 - Semester
 - No. of Years to Finish Course

When will you start paying the loan?

If 2 semesters in a year -- 18 months after last loan release
If 3 semesters in a year -- 15 months after last loan release
If 4 semesters in a year -- 14 and 1/2 months after last loan release

How long will you pay the loan?

If college course -- Choose 1 or 2 or 3 or 4 or 5 years
If vocational or technical course -- Choose 1 or 2 or 3 years

How much is the interest for the total loan?

- The annual interest rate for the consolidated loan is 6%.
- The consolidated loan is equal to the sums of the loans released per semester plus accrued interests
- Computation will be based on Diminishing Principal Balance

Are there other rules?

- A married member can apply for 2 beneficiaries (can be for his child and himself, or for his two children,
   or for his child and his spouse)
- If a married couple are both SSS members and both qualified for this educational loan, they can apply for
   2 each for a total of 4 beneficiaries (example: for their 4 children)
- An unmarried member can apply for only one beneficiary (himself or one sibling)
- No substitution of student
- School must be accredited by the CHED or TESDA
- The student will be issued a SSS no. for the purpose of tracking unpaid loans
- Unpaid loans will be deducted from the member's retirement or death benefits.
- The loan needs to be renewed every semester. Submit a new application form and assessment or billing statement.

This is the  SSS Educational Assistance Loan Program  form.

SSS educational loan 2012


Kaydee said...

Hi mutya, ito ang mga school codes in Metro Manila.

sir_truvativ said...

Good morning Ms. Kaydee... I'll just want to ask if SSS also issue educ. loans for summer classes? You see I have already availed of the educ loan for two regular semesters for my son.Pwede rin bang magloan pang summer classes? tnx. I hope you can answer ASAP. tnx.

JK said...

Hi cherry, you try to submit the requirements and ask the SSS officer to put your application on the waiting list. Based on comments online, sometimes they accept; sometime they ask you to go back when there's additional funding.

JK said...

Hi Michael, yes, your child can transfer to another school and shift to another course, but you can borrow only for the remaining years, based on the no. of years for the course you applied for in your initial application.

JK said...

Hi Maria, I haven't read yet any change related to your concern. Is your actual total tuition fee 19,700? If it is, then SSS will lend you only 19,700 because the rule is: loan amount is 20k or actual tuition fee, whichever is lower.

JK said...

Hi Norman, if this is your first time, sad to say that SSS has suspended this program for first-timers because it has used up all funds in releases and allotments for the 4-year or 5-year education of the first nearly 60,000 students who have applied first.
You can apply, but the waiting list is long, and some SSS branches no longer accept applications, and they just tell you to go back when there's news about funding.

JK said...

Hi Harlene, is this your first time to file an educational loan? If yes, your application is on hold. There are no additional funds yet for for first-time applicants.
If this is a Subsequent loan application, wait a while; maybe there are a lot of applications. Check your online account from time to time.

JK said...

Hi shiela, I don't know if your stepchild can be your dependent as SSS requires a birth certificate (with you as mother written on the birth certificate). I think SSS will recognize a court declaration of adoption.
In addition, application by first-time applicants to this educational loan program has been suspended because of lack of additional funding, as I explained in the updates above.

JK said...

Hi Gennovieve, based on their guide, repayment will be based on the total amount of all loans issued. About a year after last loan check, they will add all loans (plus interests) and then compute the monthly payment amount.

Primoris Manpower Services Company said...

my employer was delayed for 5 months in paying the sss premium, so my son could not avail of the educational plan. what should i do?

JK said...

Hi Primoris, ask your employer to pay at least 1 of the 3 months before your application. If your company does not cooperate, I think you can pay 1 month as Voluntary (as long as you already have previous posted contributions). Use RS5 form, and then present this receipt when you apply for the educational loan.
Are you a first-time applicant for the educational loan? SSS has suspended this program for new applications, so ask SSS if they're already accepting first-time applicants.

JK said...

Rafael Bautista: I've loaned twice already, but I have a new employer and my last contribution was for May 2014. Can I still apply for this loan?

Hi Rafael, since you're applying for a Subsequent Loan, yes, you can apply this November. Make sure at least 1 contribution payment for Aug or Sept or Oct has been posted in your SSS account before applying.

behlat said...

Hi! We stopped posting our contributions since July 2013. Is it possible to continue with our contributions at the current date without having to pay the penalty or paying the previous contributions. There was no deductions made anyways. So my question is, is it possible to pay our contributions and just start all over again with the same company?

JK said...

Harlene Bautista October 7, 2014
Hi, may I ask if there's hope I can be granted my subsequent educ. loan. i am an irregular 4th yr student so when it was my 1st time to avail the educ loan last nov 2013 is 4th yr 2nd sem, so now it's for 4th yr 1st sem again because I'm irregular student. sss said I'm qualified for subsequent educ loan but they have not encoded it as they'll have to refer it to the main office. But now i'm still waiting for the approval. i really need this loan in order for me to graduate because i need to settle all my financial obligations in the university where i am studying. thanks.

Hi Harlene, I hope they'll approve your application, but the main office will wonder about the year and sem you wrote in your first application. You should have written your actual year and sem (like maybe 3rd year 2nd sem) in your first application. Or you should have submitted an explanation and a certification that you're an irregular student and that you erred in writing 4th year 2nd sem in your first application.
Anyway, all is past, so just pray and pray that the SSS officer in the main office will understand your situation and approve it.

JK said...

Hi behlat, do you mean you are an employer or HR officer? and that you're asking about re-starting to remit to SSS?
If you stopped for only a few months, maybe you can continue again (this is only my opinion; ask SSS to be sure). The correct way is this: See No. 5 on this SSS form Employer Registration and this form Employer Data Change Request