UP Alumni Engineers launch income contingent, no interest loans for engineering students

InvestEd Philippines

UP Alumni Engineers_2

In line with its mission to empower UP Engineering students to succeed in their academics and future careers, the University of the Philippines Alumni Engineers Association (UPAE) is launching income share agreements (ISAs) to students enrolled in the UP Diliman College of Engineering and UP Los Banos College of Engineering and Agro Industrial Technology.

How it Works: Study now, then pay after graduation based on your income

ISAs are a form of college financing where repayments are based on a percentage of a student’s future income. Unlike traditional student loans, ISAs do not have interest, making it much more affordable for students. 

The funds are provided by alumni donors of the UP College of Engineering, through the UP Engineering Research & Development Foundation. Donors include alumni executives from top employers of engineering graduates such as DMCI Holdings, Inc., Globe Telecom, and prominent alumni families such as Bing & Elise Del Rosario. 

With the program, UP Engineering students will be provided funding that can be used for tuition (if applicable), allowances (e.g. dormitory, food & transportation), and other miscellaneous school expenses (e.g. projects, gadgets, etc.). Repayment will be purely based on a percentage of the students’ income post graduation. 

The percentage shall be customized to ensure affordability based on the students’ starting salary, family situation and career prospects. For a maximum loan of P180,000, a student only needs to pay at most P3,000 per month after graduation (approximately 12% of a 25,000 peso income). Furthermore, the student won’t be required to pay more than what they borrowed and will be given 5 years to pay. 

To further push for affordability, a floor income will apply. This means repayment will only begin once a student achieves an income above the floor income set. For example, if floor income is set at 18,000 pesos and the student earns only 16,000 per month post graduation, he/she will not be required to start making payments yet. 

The UP Alumni Engineers (UPAE) Association has partnered with InvestEd to design and implement the program. To-date, InvestEd is the lone company in South East Asia providing ISA outsourcing services for schools and philanthropic entities such as endowment funds, alumni groups, and foundations. 

“This upgraded scheme for our Study Now, Pay Later program will benefit even more engineering students in the years to come. And our partnership with InvestEd will certainly have a long term impact on nation-building.” UPAE President Patrick Anthony Pascual said.

If you are a student interested in our new affordable financing program, Confirm your attendance to our digital information session this July 24, 2022, 5PM. You may also proceed to send a preliminary expression of interest by filling out the same form

About UP Alumni Engineers Association

The University of the Philippines Alumni Engineers Association (UPAE) will be the primary organization that unifies the alumni of the UP College of Engineering (COE), providing linkage between the alumni and the COE, while promoting both to Industry and the broader community in general. UPAE will provide a venue for mutual cooperation and camaraderie among the membership even as it promotes the interest of the Engineering profession in general.