Students affected by calamities will be granted temporary financial relief as a new law suspends loan payments during emergencies.
President Ferdinand Marcos Jr. on December 6 signed Republic Act No. 12077, or the Student Loan Payment Moratorium During Disasters and Emergencies Act, providing temporary deferment of student loan collections for students in public and private institutions without penalties or interest during states of calamity or emergency.
“The benevolence of this law allows disaster-affected students and their families to have breathing space as they recuperate and rebuild their lives,” Marcos said during the signing ceremony at Malacañang.
The moratorium covers all loans related to higher education and technical-vocational training, applying to students in state universities and colleges (SUCs), local universities and colleges (LUCs), private higher education institutions, and technical-vocational institutions.
The payment freeze will take effect in areas declared under a state of calamity or emergency and will remain in place until 30 days after the declaration is lifted.
Senate President Francis Escudero, co-author and sponsor of the Senate bill, emphasized that the law addresses the rising cases of students dropping out due to financial hardship caused by disasters.
“This is not loan forgiveness but a payment freeze for the duration of the state of calamity and 30 days after its lifting,” Escudero clarified.
RA 12077 mandates the Commission on Higher Education (CHED) and the Technical Education and Skills Development Authority (TESDA) to collaborate with educational institutions and relevant agencies to develop implementing rules and regulations within 60 days.
The law also protects students from disqualification due to deferred payments, ensuring they can continue their education without facing penalties.
“No penalties or interest will be applied, and schools are encouraged to provide favorable payment terms or additional aid,” Escudero added.
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