THE Government Service Insurance System (GSIS) has rolled out a P20 billion study-now pay-later loan scheme for its members, it said in a statement on Monday.

The program’s maximum loanable amount per academic year is P100,000, which may cover tuition and other school fees. Interest rate is at 8%.

“We will allow GSIS members who have at least 15 years of government service to avail of an educational loan for their kins in college,” GSIS President and General Manager Rolando L. Macasaet said in a radio interview. The member should also be clear of any pending administrative or criminal case and have no past due loans with GSIS.

Mr. Macasaet said borrowers are not required to pay anything in the first five years of the 10-year loan program.

The state insurer said in a statement that eligible student beneficiaries are relatives or family of the GSIS member up to the third degree of consanguinity or affinity.

Interested applicants should not be on leave of absence without pay if they plan to avail the program.

“They must also meet the required net take-home pay of P5,000 after deduction of their monthly premium contributions and loan amortizations, and their  agencies must not be on suspended status,” GSIS said.

The student who will benefit from the program should also be enrolled in a four- or five-year degree in a private or public educational institution.

“The loan has an insurance cover to protect the interest of the borrowers and their student-beneficiaries. Thus it will be deemed fully paid in case the member or the student dies or becomes permanently and totally disabled,” Mr. Macasaet said.

The GSIS in August launched a P30,000 loan program meant to finance laptop or desktop purchases amid the coronavirus pandemic that caused the need for distance learning. — LWTN