MANILA, Philippines – A senior administration congressman has filed a bill that would grant incentives to banks and other financial institutions that would make available education loans to students.

Deputy Majority Leader Roman Romulo of Pasig City urged his colleagues to support House Bill 1876 that seeks to make quality education accessible to everyone, especially the least privileged students.

HB 1876 encourages the private sector to establish a student assistance program to help eligible students to finance enrolment to vocational, technical and higher education.

Romulo said that by making available funds for tuition fees and other education expenses, students will be given the opportunity to finish their studies and have a better future.

“By encouraging banks and government financial institutions to lend money to eligible students, the dream of our youth in obtaining a college diploma is realized,” Romulo said.

Romulo noted that private sector, particularly banks, plays a vital role in national growth by providing an environment conducive to the sustained development of the national economy.

Under the bill, to be known as “The National Student Assistance Act,” banks, government or private and government financial institutions, shall allot at least three percent of their loanable funds for loans to eligible students.

Such loans will be repaid through installments that would stretch to at least 24 months.

The loan grants must include expenses for tuition fee and miscellaneous fees of the educational institution, the amount for cost of attendance covering necessary expenses of the student for books, food, transportation and a reasonable allowance for projects and other school requirements.

Romulo said such banks and government financial institutions shall be entitled to avail of the incentives in the form of tax credits and interest rates that are guaranteed to realize a reasonable return on their investments by registration of their student loan programs with the State Assistance Council and the Bangko Sentral ng Pilipinas (BSP).

The State Assistance Council, in coordination with the Technical Education and Skills Development Authority (TESDA) and the Commission on Higher Education (CHED), shall be responsible for policy guidance and direction, monitoring and evaluation of the student assistance program.

Likewise, the State Assistance Council, the Department of Finance (DoF) and the BSP shall formulate the implementing rules and regulations in consultation with the Social Security System (SSS), Government Service Insurance System (GSIS) and the Bureau of Internal Revenue (BIR).

“The constitutional mandate of the State is to give priority to education in order to foster patriotism and nationalism, accelerate social progress and promote total human liberation and development and to protect and promote the right of all citizens to quality education at all levels and ensure universal access to such education,” Romulo said.