Albay Rep. Joey Salceda (File photo) MANILA - A lawmaker on Friday pushed for the full implementation of the Higher Education Contribution Scheme (HECS) under the Free College Tuition Law, which is a low-interest student loans program, in which, students will amortize their tuition loans only when they reach a certain income level. In a statement, Albay Representative Joey Salceda said the scheme will ensure that every student can go to any private school they choose as long as they pass the admission requirements of that school. He noted that there are private school programs, especially in top private universities, that state universities and colleges cannot offer. "Private universities are also a source of innovation in higher education in the country," he said. "Section 8 of RA 10931 would allow that by providing very low-interest student loans that borrowers can pay as a small deduction from their salaries once they reach a certain salary level. If they earn below that level, they will not yet be required to start paying," Salceda said. He said the theory is that private expenditures on education are a means to increase long-term personal income, hence, a portion of that hypothetical future income can be borrowed by the student to finance present education fees. "With increased income in the future, the student should be able to gradually pay off the loan through reasonable monthly contributions incorporated in the SSS (Social Security System) or GSIS (Government Service Insurance System) contributions. He said payment of the loan amount will commence once the beneficiary secures any gainful employment with compensation, remuneration, or earnings that reaches the Compulsory Repayment Threshold (CRT). "Hence, the student repays only once capable, and, being state-financed, the loans do not balloon unlike the US model," Salceda said. Salceda described the scheme as a "progressive study-now, pay-later scheme, as well as a "balancing factor" to the free college tuition scheme in state universities and colleges. "If state university is now free, we need to find a balancing factor to make private education affordable, too," he said. (PNA) }