The coronavirus pandemic did not only cause economic crisis among many Filipino workers, it has also challenged the studies of many students this school year. To help solve this problem, the Land Bank of the Philippines allotted P3 billion credit support for private academic institutions to implement the “Study Now, Pay Later” scheme for students.
Study Now, Pay Later Program of Landbank of the Philippines
Under the ACADEME (or Access to Academic Development to Empower the Masses towards Endless Opportunities) Lending Program, the Landbank of the Philippines allotted P3-billion worth of total credit fund for continuing students in the private high school, private technical and vocational education training institutions, as well as Higher Education Institutions (HEIs) such as colleges and universities.
The said program will follow the ‘3-3-3’ features – wherein the P3-billlion program-fund is utilized as credit support, only 3% fixed interest rate per annum is given, and those who will avail are given at most three years to pay.
Landbank ACADEME Lending Program
This spearheaded program by the Landbank of the Philippines is open to private/non-private Department of Education Junior/Senior High Schools with permit to operate by DepEd. It is also open to Private Technical-Vocational and Education Training Institutions in partnership with the Technical Education and Skill Development Authority (TESDA).
Colleges and Universities with undergraduate programs, as authorized by the Philippine Commission on Higher Education (CHED) are also eligible to avail the lending program. Higher Education Institutions must be either accredited by the following: Philippine Accrediting Association of Schools, Colleges and Universities (PAASCU), Philippine Association of Colleges and Universities’ Commission on Accreditation (PACUCOA), Association of Christian Schools, Colleges and Universities Accrediting Association Inc. (ACSCU-AAI) or Federation of Accrediting Agencies of the Philippines (FAAP).
This financing intervention granted by the Landbank of the Philippines aims to ensure that students are still able to enroll in school when classes for school year 2020 – 2021 resumes.
How ACADEME Lending Program Works
The Landbank ACADEME Lending Program will provide the refinancing or rediscounting of promissory notes issued by the parents or benefactors of students for school loans. Schools that are eligible for this program can borrow up to 70% of the sub-promissory notes on a per semester basis and subject further to a maximum amount based on the school’s net borrowing capacity.
The loan will be released either in lump sum or staggered basis per semester and will be directly credited to the deposit account maintained by the school with Landbank.
This lending program is available until June 30, 2020.