The Commission on Higher Education (CHED) on Wednesday, Sept. 7, confirmed that it has suspended its ‘study now, pay later’ program for college students due to the unpaid loans of many students.
“The ‘study now, pay later’ program, became a ‘study now, pay never.’ The payment rate was extremely low. It was less than 10%,” CHED Chairperson Prospero de Vera said during the hearing of the Higher, Technical and Vocational Education Committee led by Senator Chiz Escudero.
“The government was unable to collect because after the student graduates, the government is unable to go after them anymore because if they don’t get jobs after they graduate, how can they pay their loans? So the CHED had to stop the ‘study now, pay later’ program,” he added.
De Vera said the CHED has allocated a P1 billion fund for UniFAST for financial assistance by way of loans to enrolled students. No collateral is required, but the borrower shall pay the loan while they are studying.