State-lender Land Bank of the Philippines (Landbank) has already extended half a billion pesos to educational institutions providing financial assistance to students affected by the economic shock triggered by the coronavirus pandemic.
As of October 27 this year, Landbank has thus far disbursed P500 million loans to 12 educational institutions to assist them in implementing their respective "study now, pay later" plans for students.
Likewise, Landbank is awaiting the completion of the necessary documents for the processing of applications of 12 other schools under the Access to Academic Development to Empower the Masses towards Endless Opportunities (ACADEME) lending program.
In a report to Finance Secretary Carlos G. Dominguez III, Cecilia Borromeo, Landbank president and chief executive, also said that 14 other schools are set to submit their loan requirements to qualify for the program.
The outstanding balance under the ACADEME program is at P8.805 million, Borromeo said.
“Lending units nationwide continue to work closely with applicant-schools to complete their requirements as we process a pipeline of loan applications with approvals at various levels based on amount,” Borromeo said in her report.
Borromeo said Landbank continues to offer ACADEME along with its Interim Students' Loan for Tuition towards Upliftment of Education for the Development of the Youth (I-STUDY) direct lending program.
I-STUDY is a direct lending program to parents, guardians, or benefactors for the education of their children, which will also assist private schools and downstream industries to sustain and continue their operations.
"The Bank will continue to promote these two lending programs as a vital contribution of the Bank in assisting students and the schools under the Bayanihan II Law (Republic Act 11494)," Borromeo said.
The P3 billion ACADEME program was in May to extend credit to private high schools, private technical-vocational education training institutions, colleges and universities with the goal of encouraging students to enroll under a “study now, pay later” setup.
These promissory notes will then be refinanced or rediscounted under the program, with schools allowed to borrow as much as 70 percent of the sub-promissory note per semester and subject.
However, schools can only borrow up to a certain maximum amount based on the net borrowing capacity of the institution.
The lending program is available until June 30, 2021.