Imagine this: You’re entering college worry-less, not having to stress over your tuition and daily school expenses. Then you pay for it without any interest only when you graduate and start earning an income.
In the Philippines, where access to quality education comes at a hefty price, this scenario looks impossible. While there are available support for those who lack the resources to pursue tertiary education–scholarships and loans from relatives & friends, to name a few–the opportunity remains elusive for many struggling students.
In line with its mission to empower UP Engineering students to succeed in their academics and future careers, the University of the Philippines Alumni Engineers Association (UPAE) is launching income share agreements (ISAs) to financially under-resourced students.
ISAs are a form of college financing where repayments are based on a percentage of a student’s future income. Unlike traditional student loans, ISAs do not accrue interest, making it much more affordable for students.
How it Works: The UPAE Income Share Agreement (ISA)
Eligibility Requirements
- Student must be enrolled in the UP Diliman College of Engineering or UP Los Banos College of Engineering and Agro Industrial Technology
- Sophomore to graduating students are eligible
- There are no grade requirements
Funding Uses, Amount & Disbursement
- Funding amounts and disbursement schemes will be customized based on the student’s need. However, maximum funding per student is P180,000.
- Funding may be used for tuition (if applicable); allowances (e.g. dormitory, food & transportation allowance); and other miscellaneous school expenses (e.g. projects, gadgets, etc.)
- Funding shall be approved on a per semester basis.
- Disbursement of allowance shall be on a monthly basis (not lump sum), while other miscellaneous expenses will be lump sum.
Repayment Scheme
Students are only required to start paying once they are already earning an income. A floor income shall also be set based on a students’ degree. If a student earns below stated floor income, repayment will not begin. For example, if floor income is set at 18,000 pesos and the student earns only 16,000 per month post graduation, he/she will not be required to start making payments yet.
As an example, for a maximum loan of P180,000, a student only needs to pay at most P3,000 per month after graduation (approximately 12% of a 25,000 peso income). Furthermore, the student won’t be required to pay more than what they borrowed and will be given 5 years to pay.
Interested? Confirm your attendance to our digital information session this July 24, 2022, 5PM. You may also proceed to send a preliminary expression of interest by filling out the same form.
Our Implementing Partner: InvestEd Philippines
The University of the Philippines Alumni Engineers Association (UPAE) has partnered with globally acclaimed impact business InvestEd in the implementation of the Income Share Agreement for College Degrees. InvestEd partners with mission-aligned institutions to bring education access to millions of under-resourced youth. It provides ISA outsourcing services for philanthropic entities such as alumni groups, foundations, and school endowment funds.