GSIS Government Service Insurance System

Financial Center, Pasay City, Metro Manila 1308

POLICY AND PROCEDURAL GUIDELINES (PPG) NO. 361-20

FUNCTIONAL AREAS : LOANS

DISTRIBUTION All Senior Vice Presidents

All Vice Presidents
All Managers

SUBJECT MATTER GSIS FINANCIAL ASSISTANCE LOAN

EDUCATIONAL LOAN (GFAL-EL)

I. BACKGROUND

Based on the data provided in eCompareMo.corn’s article 'Tuition Fee Guide:

2019 Cost of College Education in the Philippines,” the average tuition fee in
private colleges and universities is already Php145,000/year. However, for state
universities and colleges (SUCs), the average tuition fee is estimated at
Php20,500.00/year.

With the 7-percent average annual increase in tuition fees, in five (5) years’ time
the average tuition fee in private colleges or universities will be at
Php204,000/year, and almost Php30,000.00/year at SUCs.

Just recently, the Commission on Higher Education (CHED) announced a

possible increase in tuition and other fees in the country's private higher
education institutions which were forced to move the start of the academic year to
August due to the COVID-19 pandemic.

In support to the call of the President for credit support for education so that
students can stay in school despite economic difficulties, the GSIS is going to
offer an educational loan similar to the "study now, pay later” concept in the past,
but taking into consideration as well the lessons learned from our past
experiences in the Study Now, Pay Later (SNPL) Program and Educational
Assistance Loans (EAL) programs implemented in the late 70’s, pursuant to
President Decree No. 932 (P.D. 932) and Republic Act No. 6728, respectively.

GFAL-EL is an educational loan that will be offered to GSIS members to pay for
tuition fees and/or other school expenses of their nominated student-
beneficiary/ies. The term of the loan is maximum of ten (10) years including
grace period of maximum of five (5) years.

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