By Raheema Velasco

The Commission on Higher Education (CHED) has terminated its “Study Now, Pay Later” (SNPL) program amid “extremely low” payment rate from students.

According to CHED Memorandum Order No. 29 Series of 1996, the program gives educational loan grants to deserving and qualified students who will pay after they finish their schooling. 

During the Senate Committee on Higher, Technical and Vocational Education hearing, CHED chairperson Prospero de Vera cited that less than 10% of the tertiary students who avail the program have paid their loans.

“The government was unable to collect because after the students graduates, government is unable to go after them anymore because if they don’t get jobs after they graduate, how can they pay their loans,” de Vera said.

Following the discontinuation of SNPL, the department has allocated a P1 billion funding for the new student financial assistance program under the Unified Student Financial Assistance System for Tertiary Education (UniFAST).

Contrary to SNPL, De Vera explained that under Student Loan Program (SPL), students will now have to pay their loans before graduating from college.

“It is a system similar to what some of our universities like UP (University of the Philippines) is implementing now. UP has a loan program where the students borrow and if they pay it within the school year, there is no interest. Otherwise, they have to pay it before they graduate. They cannot graduate if it is not fully paid,” he clarified.

De Vera stressed that SLP is a better program than the SNPL yet he also mentioned that only a few students were availing of the new program.

The SLP is one of the educational aid subsidies provided by RA 10931; other programs include the Free Tech-Voc Education and Training Program, Free Higher Education, and Tertiary Education Subsidy.

The short-term loan program offers a maximum loan amount of P60,000 for each student enrolled in private colleges with zero interest if paid within the academic year.

Irregularities

Last August 12, Senator Risa Hontiveros submitted a resolution calling for an investigation into the estimated P7 billion in "leakages" discovered during the Commission on Higher Education's (CHED) implementation of UniFAST.

"The recent COA report casts doubt as to the veracity and strength of the control mechanisms within UniFAST in implementing the Universal Access to Quality Education," Hontiveros said.

She was citing the Commission on Audit’s (COA) report on the issues revolving around UniFAST such as: tuition and other school fees overcharged by P131 million, P251 million in reimbursements even though each local government units already entirely supported each local universities and colleges, delayed and unsubmitted Free Higher Education billings and paperwork totaling P3.443 billion, and payments of P824 million made to state and local universities and colleges without accompanying official receipts.

In response to Hontiveros’ probe, CHED asserted that there were no “questionable releases” to their scholarship program, and they have already responded to COA regarding their observations.