Chiz lauds passage of student loan moratorium, calls act ‘a timely intervention’

Senator Francis “Chiz” Escudero lauded President Ferdinand "Bongbong" R. Marcos Jr. for approving the Student Loan Payment Moratorium During Disasters and Emergencies Act (Republic Act 10277), calling it "a timely intervention" to help prevent students from dropping out of school due to financial constraints during disasters.

“We are currently experiencing a higher frequency of weather disturbances that are more intense and destructive. We always see the destruction caused in the aftermath of these calamities, but we often miss the other victims, the students, many of whom end up sacrificing their future because of these disasters,” he said.

According to the lawmaker, the newly enacted 10277 is meant to provide a lifeline to students, particularly those from underprivileged families, to continue their studies even after a disaster.

Escudero, co-author and sponsor of Senate Bill No. 1864 when he was chair of the Committee on Higher, Technical, and Vocational Education, also noted that the new law provides for a moratorium on the payment of what tertiary students financially owe their schools when these are within the jurisdiction of a national or local declaration of a state of calamity.

Included in the moratorium are all fees, charges, and costs relating to the student loans incurred for higher education and TVET programs.

The obligations include those administered by higher education institutions, technical-vocational institutions, or by the Unified Student Financial Assistance System for Tertiary Education (UniFAST) Board, the Commission on Higher Education, or any other government agency or instrumentality.

“Just to be clear, this is not loan forgiveness but a payment freeze for the duration of the declaration of a state of calamity or emergency and for another 30 days after its lifting,” Escudero said.

The law ensures that students who will be availing themselves of the moratorium on loan payments are still eligible for re-enrollment or graduation.

Under the law, no penalties or interest would be applied to the deferred obligations, and the schools are also encouraged to provide favorable payment terms or other forms of aid to the affected students.

“This law adheres to the spirit of ‘damayan’ among Filipinos. It is the obligation of the government to ensure that each and every child has access to education and to find ways to remove any obstacles that stand in the way of her or his full education,” Escudero said.