Education matters most in the Philippines. Filipinos believe that graduating from one of the finest schools in the country is a ticket to an individual and his family’s better future and fortune.
Better future and fortune are some of the reasons why a lot of Filipinos do every option available to finish their studies. One of these options is to get a student loan.
A student loan is a type of loan intended to help students pay for their education and the fees associated with it such as their tuition fee, books, and supplies, and for some, it also includes the living expenses of the student. The interest rates of student loans are quite lower and the repayment scheme is also flexible. Some require students to pay either in cash after finishing or during their studies or services such as working on the lender’s firm or business for a certain period.
Student loan regulation differs from one country to another. In the Philippines, student loans are an alternative payment solution for college or postgraduate students looking for financial flexibility. Government agencies such as SSS, Pag-IBIG, and CHED, or Commission on Higher Education, banks, and private lenders offer student loans or commonly known in the country as the “study now pay later” scheme.
WHY IS A STUDENT LOAN RIGHT FOR YOU?
Manageable Monthly Expenses
Working students who are covering for their tuition and expenses and families who have a tight monthly budget might have a hard time paying full educational expenses. Having a student loan can give flexibility to a family’s household budget and can provide time to save money for working students. For example, if a student tuition fee for a semester is Php 35,000 with a 12-month installment student loan plan the student or his family needs to pay around Php 2,197 + interest rate a month.
Opens More Opportunities
One of the hindrances why a Filipino student doesn’t want to finish studies or go to a prestigious school in the country is the high cost of tuition fees. Getting a student loan will provide a manageable budget to the household which will enable students to get their desired course or career. Aside from this, schools, universities, firms, and businesses that offer student loans give students the chance to work to them and some are being hired or absorbed right after their graduation.
Some student loans in the country are also being offered to postgraduate courses such as medicine, law, and master’s degree.
Long Term Benefit
A student loan may seem a short-term or instant solution to finance a family member or your educational needs, but it can also provide a long-term benefit.
One long-term benefit of student loans is they can teach you how financial products work in real-life applications. Having experience with a student loan will give you an idea and confidence in applying for other loans such as credit cards, house, and car loans, or whatever you need in the future.
Another long-term benefit is it helps build your credit rating. As you pay your loan on time, you create better credit history that will lead to good credit ratings. In the future, applying for loans, credit cards and other financial products would be easier for you since you have a good credit standing.
Lastly, having a student loan will teach you to budget and save money for you to pay your debts on time.
There are quite a lot of good reasons to get a student loan it doesn’t fit everybody. To find the right student loan for you or if it is right for you, it is a must to research and compare all the student loans available in the market.