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Private Schools Get “Study Now, Pay Later” Loans

  • Landbank has provided loans to three private educational institutions in addition to more than 80 schools in the shortlist with “study now, pay later” programs.
  • The Department of Finance already approved P260 million in loans to three schools under the loan program.
  • The P3-billion Academe program, launched by Landbank last month, aims to extend credit to private high schools, colleges, and universities as well as technical-vocational training institutions to enable the parents of their students to issue promissory notes covering school fees.
  • Visit The Financial Today’s homepage for more stories.

The Land Bank of the Philippines has provided loans to three private educational institutions in addition to more than 80 schools in the shortlist with “study now, pay later” programs to be made available to students amid the COVID-19 pandemic.

The Department of Finance said in a statement on Monday that Landbank’s board chaired by Secretary Carlos G. Dominguez III already approved P260 million in loans to three schools under the Access to Academic Development to Empower the Masses toward Endless Opportunities (Academe) loan program.

The P3-billion Academe program, launched by Landbank last month, aims to extend credit to private high schools, colleges, and universities as well as technical-vocational training institutions to enable the parents of their students to issue promissory notes covering school fees.

Those promissory notes will then be refinanced or rediscounted under the program, according to the DOF, with schools being 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 DOF stated.

“Loans under the program carry an interest rate of 3 percent a year and are payable based on the maturity of the sub-promissory notes but not to exceed three years,” the DOF added.

According to the DOF, Landbank is holding follow-through meetings with 15 other schools to help them assess their eligibility for the loan program. Similarly, another 61 schools across the country expressed interest in using the Academe facility.

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