Question & AnswerQ&A (OWWA MEMORANDUM OF INSTRUCTION NO. 003)
The purpose of the Educational Loan for Displaced Marine Radio Officers (MROs) is to provide interest-free monetary assistance to displaced Marine Radio Operators who wish to take up a course leading to a Bachelor of Science in Marine Transportation (BSMT) to re-tool and upgrade their skills for continued employment as seafarers.
The program covers only displaced Marine Radio Operators (MROs) who have at least one (1) OWWA contribution.
The maximum loan amount per beneficiary is twenty-one thousand pesos (P21,000).
Yes, there is a 4% administrative handling charge on the loanable amount, and a penalty charge of 1% monthly for delayed payments.
The loan is payable in ten (10) equal monthly installments starting on the fifth month after completion of the course, with a four (4) months grace period.
Failure to pay three (3) consecutive monthly installments renders the entire obligation due and demandable immediately.
Loan repayment shall commence two (2) months after the grantee stops attending school, regardless of the reason.
Applicants must submit: a Seaman's service record book/proof of OWWA contribution, proof that they were an MRO (seaman's book or contract), school registration form with assessment, co-maker's payment guarantee with income tax return or certificate of employment including salary and length of service, and a duly accomplished application form.
The co-maker must have an income per annum of at least sixty thousand pesos (P60,000) and must submit a payment guarantee along with proof such as income tax return or certificate of employment with office ID indicating position, salary, and length of service.
The Manpower Development Benefits Department (MDBD) first evaluates the applicant's credentials. If qualified, the Training Assistance Division (TAD) issues application forms. TAD's Receiving Officer evaluates documents, and the Officer-in-Charge of TAD recommends approval. The Officer-in-Charge of MDBD finally approves or disapproves the loan application.
The loan check is made payable to the enrolled school. Fifty percent (50%) of the loan amount is released at the start of classes, and the remaining fifty percent (50%) is released one month before the end of the nine-month course, subject to submission of a certificate proving satisfactory completion of course requirements.
The Manpower Development Benefits Department-PPO (MDBD-PPO) manages the implementation and continuous study of the project during its pilot testing phase.
The Memorandum of Instruction took effect immediately upon its adoption on June 1, 1999.