The GSIS Education Loan Program, also known as the Ginhawa for All (GFAL) Educational Loan, provides financial assistance to active members of the Government Service Insurance System (GSIS). Designed as a “study now, pay later” scheme, this loan helps members fund their children’s or relatives’ college education, offering a flexible repayment plan.
For those struggling with tuition fees and school-related expenses, this program provides a solution, allowing members to access up to ₱500,000 for their beneficiaries’ education. Understanding the qualifications, requirements, and application process is necessary to take full advantage of this GSIS benefit.
Program Overview
The GSIS Education Loan (GFAL-EL) is a financial assistance program that aims to provide support for educational expenses. It allows members to nominate up to two student-beneficiaries who are related to them by up to the third degree of consanguinity or affinity. This loan covers tuition fees, miscellaneous school expenses, and summer classes required by the curriculum.
The program offers an interest rate of 8% per annum and comes with a 10-year repayment period. Borrowers also benefit from a grace period of up to five years before they are required to start repaying the loan.
Loan Features
The program offers flexible and convenient benefits for GSIS members and their student-beneficiaries:
- Loan Amount: Up to ₱100,000 per school year, with a maximum of ₱500,000 for a five-year degree program
- Student-Beneficiaries: Borrowers can nominate up to two beneficiaries related by up to the third degree of consanguinity or affinity
- Grace Period: Repayment begins after a maximum grace period of five years, allowing ample time to prepare for payments
- Payment Terms: The loan has a 10-year term with an 8% annual interest rate, computed in advance
- Direct Payments to Schools: Loan proceeds are directly paid to the school every semester or academic term
- Loan Guaranty: GSIS issues a Letter of Guaranty (LOG) to student-beneficiaries for enrollment purposes while waiting for the loan proceeds
- Loan Redemption Insurance (LRI): The loan is considered fully paid in case of death or permanent total disability of the borrower or beneficiary during the loan term
- Coverage: Includes tuition fees, school expenses, and summer classes if part of the curriculum
- Co-Maker Clause: Beneficiaries automatically act as co-makers once they reach legal age
Benefits
It also offers the following benefits:
- A “study now, pay later” system with a 5-year grace period before repayment starts
- Low fixed interest rate
- Flexible payment terms of up to 10 years
- Up to two student-beneficiaries related by consanguinity or affinity
- Co-maker benefit ensures accountability of the student once they reach legal age
- LRI to cover the balance in case of death or disability of the borrower or beneficiary
- Direct payments to schools for convenience and faster enrollment
- Graceful exit options for retirees through the CLASP (Choice of Loan Amortization Schedule for Pensioners) repayment scheme—a scheme designed to allow retired GSIS members to settle their outstanding loans through flexible monthly deductions from their pension benefits
Target Beneficiaries
The GFAL-EL program was designed to assist the following:
- Children of active GSIS members pursuing an undergraduate degree
- Relatives of members up to the third degree of consanguinity or affinity (e.g., siblings, nieces, nephews)
- Students enrolled in public or private universities offering four- or five-year undergraduate courses
- Student-beneficiaries willing to act as co-makers of the loan upon reaching 18 years old
Qualifications
To be eligible for the loan, the following conditions must be met:
Qualified Borrowers
- Active GSIS Membership: Must have at least 15 years of government service
- Updated Contributions: Should have paid at least three months of both personal and government contributions
- Employment Status: Must not be on leave without pay
- Good Standing: Should have no pending administrative or criminal cases and no past-due GSIS loans, including housing loans
- Agency Compliance: The agency must not be under suspension
- Net Take-Home Pay (NTHP): After deductions, the member should meet the minimum NTHP requirement of ₱5,000, as mandated by the General Appropriations Act
Qualified Student-Beneficiaries
Borrowers can nominate up to two beneficiaries who meet these conditions:
- Must be Filipino citizens residing in the Philippines
- Should be related to the borrower by up to the third degree of consanguinity or affinity
- Must be enrolled in an undergraduate program with a maximum study period of five years
- Should agree to serve as a co-maker for the loan once they reach legal age (18 years)
Requirements
To apply, borrowers must first prepare the following requirements:
- Application Form: Fully accomplished and endorsed by the Authorized Agency Officer (AAO)
- Tuition Assessment Form: A photocopy of the latest tuition assessment form is required (original copy must be presented)
- Student ID: A photocopy of the student-beneficiary’s school ID (front and back) with three signatures affixed on the same page. If the school ID is unavailable, any valid ID with the student’s birth date, photo, and signature will suffice
Note: The same requirements must be provided if there is a second student-beneficiary as it will be treated as a separate application.
Step-by-Step Application Process
GSIS members can apply for the education loan through the following methods:
1. Via eGSISMO (GSIS Members Online)
Step 1. Log in to your eGSISMO account.
Step 2. Select GFAL-Educational Loan from the “Loan Application” menu.
Step 3. Upload the following documents:
- A photo of the borrower holding their UMID or two valid government IDs.
- Tuition assessment form.
- Student ID with three signatures.
Step 4. Confirm the loan agreement and click “Save.”
Step 5. Wait for GSIS email confirmation, which will include the tentative loan computation and details of the loan counseling session via video conference.
Step 6. Submit the original copies of all uploaded documents to GSIS.
2. Via Email
Step 1. Download and fill out the GFAL-EL Application Form.
Step 2. Scan the completed form and UMID card, saving them as PDF or JPEG files.
Step 3. Email the documents to the designated GSIS branch handling your account.
Step 4. Await email confirmation and schedule for loan counseling.
Step 5. Submit the original copies of the scanned documents to your GSIS branch.
Where to Get the Application Form
You can download the application form for the GSIS GFAL-Education Loan (GFAL-EL) from the official GSIS website at https://www.gsis.gov.ph/downloads/forms/2023/20240507-GFAL-Education-Loan.pdf. Alternatively, you may request a copy directly from your GSIS handling branch office.
Frequently Asked Questions (FAQs)
For your reference, here are some of the most common questions and answers about GFAL-EL that will help you better understand the program:
1. Does the loan cover summer classes?
Yes, provided the summer classes are part of the curriculum.
2. Can borrowers pay off the loan early?
Yes, borrowers can settle the loan in full without incurring pre-termination charges.
3. What happens if the borrower retires or resigns?
The loan becomes due, and the outstanding balance is deducted from the borrower’s retirement or separation benefits.
4. Can the loan be canceled?
GSIS may cancel future loan releases if the borrower resigns, retires, misrepresents information, or if the student-beneficiary drops out of school without valid reasons.
5. What happens if you cannot pay?
If a borrower fails to make six or more monthly payments, the outstanding balance becomes due. GSIS may deduct the amount from the borrower’s future benefits or seek payment from the student-beneficiary.
In cases of death or permanent disability of either the borrower or the student-beneficiary during the loan term, the loan is considered fully paid under the Loan Redemption Insurance.
Video: GSIS Study Now Pay Later Offers Education Loan of up to 500K
To learn more about this loan program from GSIS, watch this video from Bing Repole:
Summary
The GSIS Education Loan Program is a convenient “study now, pay later” option for members who want to support their relatives’ college education. With a maximum loan amount of ₱500,000, flexible repayment terms, and a five-year grace period, this program provides much-needed financial assistance. By meeting the qualifications and submitting the necessary requirements, members can easily apply through eGSISMO or email. To stay informed and maximize this GSIS benefit, consult the GSIS website or contact their offices today.