Section 8Sec./Art. 8

National Student Loan Program. The Board shall pursue a long-term plan for the development of a self- sustaining National Student Loan Program (NSLP) which shall provide qualified students short-term and long-term financial assistance for Tertiary Education. This plan shall be based on a systematic evaluation of lessons learned from current and past Student Loan schemes, both local and international.

To achieve this, the Board shall endeavor to ensure the professionalization of the NSLPs management, the establishment of an appropriate organizational setup that shall best implement the Program, and the institution of accountability mechanisms, sanctions and incentives conducive for the effective and efficient collection of loan repayments.

The Board shall explore different processes, including systematic testing and rigorous evaluation of methods to be undertaken to minimize the risk of non-repayment of loans and collection costs. It shall also encourage private sector participation to ensure the delivery of the best possible service suitable to the needs and objectives of the NSLP.

The Government Service Insurance System (GSIS) and Social Security System (SSS) shall study the feasibility of having an automatic system of salary deduction for Student Loan repayments of members with unpaid Student Loans, pursuant to a memorandum of agreement to be executed by the Board with the GSIS or SSS, respectively, and in accordance with labor laws on deduction of payments.

The top ten (10) graduates of all public high schools shall be given priority in the grant of the Student Loan: Provided, That the loan granted shall be repaid in installment basis after the student graduates or leaves the educational institution: Provided, further, That the educational loan shall be sourced from the five percent (5%) of the total loanable portfolio of the Development Bank of the Philippines without prejudice to the creation of other Student Loan programs.