Many challenges may hinder a Filipino student’s dream of finishing college and poverty is right at the top of the list.
According to the Philippine Statistics Authority, the average Filipino family earns Php267,000 a year or a little over Php22,000 a month.
Almost half of this amount usually goes to food, while the other half is divided to cover utilities, transportation, rent, and clothing. Sadly, families who belong to lower social classes may not be able to shoulder the cost for higher education due to low monthly income.
In a 2017 survey done by Philamlife, only 23% of Filipino youth are able to finish college due to financial constraints.
While this number is alarmingly low, more alternatives to support one’s educational expenses are now available for students and parents in need.
If you’re an aspiring college graduate, applying for a student loan is one of the best ways to support your college education when cash is not readily available. You just have to choose a reliable provider that can guide you towards graduation.
You might think that getting a student loan would only put you into considerable debt, but that isn’t the case as there are student loan providers who genuinely want to help the Filipino youth finish higher education.
Here are four reasons why student loans should not be regarded as debt-traps but rather good investments that lead to many great returns.
They are inclusive
Several institutions in the country offer various student loan programs such as the Commission on Higher Education and the Development Bank of the Philippines, allowing students in both public and private schools to borrow up to Php60,000 with zero-interest for tuition fees, books, and school supplies, with payments settled on or before the end of the current semester.
InvestEd, the Philippines’ leading provider of education loans, offers mentorship programs on financial literacy and career coaching, as well as loans covering the specific needs of students such as dormitory fees, financial support during internships, thesis funding, and electronic equipment — aside from monetary assistance to shoulder tuition fees.
They are considered good investments
Most people will think that incurring debt as a student is inadvisable, but student loans are positive alternatives to provide for one’s need to finish college. This method of financing is also present in neighboring countries like Thailand, India, Hong Kong, and South Korea as offered by their governments, private entities, employers, or institutions. In fact, even developed countries like Australia, Canada, France, and Germany also offer student loans to its youth.
In the country, this form of financial help is fast-becoming one of the most viable alternatives for Filipino families who are struggling to keep their children in school. Borrowing money via student loans can now be more convenient and reliable with some providers offering parent-assisted student plans to help curb the challenges of payment.
They can mentor you towards gainful employment
Student loan providers like InvestEd offers mentorship programs for its Investees to help them finish school, get training for work, and land jobs sooner (Investees are able to find jobs, on average, in 17 days versus the 90-day Philippine average). Online support groups and relevant training on money and investment guides are also available to them in preparation for the real world.
According to one study, student loans can also contribute to a student’s academic improvement as measured by higher GPAs. This is because reputable providers teach them the importance of education, pursuing a degree, and preparing for a career.
They provide you with better chances of securing a college diploma
A reputable student loan provider’s main aim is to aid students in their pursuit to finish school and secure a job. A good provider does not bait parents or students into debt-traps but offers more convenient ways to send children to school and be successful after graduation.
These days, education-related costs continue to rise, and expenses for transportation, food, housing, school fees, and even educational complements such as laptops and internet access all add up along with increasing tuition fees.
Whether you are a student or a parent, reviewing what student loan providers can offer you or your child can certainly help curb educational expenses and make the pursuit of a college diploma closer to realization.
If you’re looking for a provider that focuses on helping the underprivileged youth graduate college, check out the Philippines’ leading education loans provider here.