Question & AnswerQ&A (Republic Act No. 6014)
The main policy is to give equal opportunity to all persons who desire to pursue higher education by extending financial assistance and promoting scholarship grants-in-aid to deserving students so that no person is deprived of education due to poverty.
The Students' Loan Fund Authority is a government agency created to administer educational loans and scholarship grants-in-aid, and it is under the Department of Education.
Scholarship grants-in-aid refer to amounts loaned to student recipients to cover matriculation and other school fees.
Education loans are amounts loaned to student recipients to cover expenses for books, subsistence, board, and lodging.
The annual amortization of such loans shall not exceed fifteen percent of the annual income of the grantee.
The Executive Board is composed of twelve members including the Secretary of Education as Chairman, representatives from state universities, sectarian and non-sectarian universities, the Philippine Association for Guidance and Personnel, Commission on National Integration, Department of Labor, government financing institutions, private sector, and the student sector.
Applicants must be Filipino citizens who graduated from a recognized high school, with a general average of at least 80%, certified qualified by their principal to pursue higher education, have parents or guardians with an annual income of less than P2,500 and no excessive real estate, submit a study plan, and pass necessary examinations administered by the Authority.
Repayment begins after the student has finished their course and after one year of employment, with interest accruing at six percent per annum upon employment.
Distribution is in proportion to the population of various cities and provinces.
Student-debtors are not entitled to financial aid for subjects they repeat due to failure or unjustified dropout.
Members of the Executive Board are appointed by the President of the Philippines with the consent of the Commission on Appointments.
If a vacancy occurs due to death, resignation, removal, or incapacity, the President or Board may appoint a successor to serve the unexpired term.
The Commissioner is the Secretary of the Board and executive officer of the Authority, responsible for executing policies, organizing administrative machinery, and appointing personnel.
It is financed by proceeds from bonds issued by the Authority, donations, legacies, grants-in-aid, and appropriations by law.