Most Filipino students know about free tuition and the Tertiary Education Subsidy. Far fewer know that the same law created a third option: a government student loan with zero interest if repaid on time.
It exists for a specific gap — families earning too much to qualify for need-based subsidies, but not enough to pay private college tuition outright. And it is chronically underused. CHED has earmarked around ₱1 billion for student loans in a single year while reporting practically no takers.
What Is the UniFAST Student Loan Program?
The Student Loan Program (SLP) was established by Republic Act No. 10931, the Universal Access to Quality Tertiary Education Act, and is administered by UniFAST with CHED as lead implementing agency.
It replaced the old Study Now, Pay Later Program (SNPLP), which CHED discontinued in 2018 after the government found it extremely difficult to collect repayments from graduates. The CHED chairperson bluntly described what SNPLP had become in practice: a "study now, pay never" program. The SLP was designed to fix that, which explains its stricter repayment structure.
What the Loan Can Be Used For
The SLP is broader than most students assume. It supports:
- Undergraduate studies
- Licensure examination reviews — board exam review costs
- Graduate studies, including medicine and law
That last point matters enormously. Free Higher Education under RA 10931 does not cover graduate study, medicine, or law. The SLP is one of the few government facilities that does.
Short-Term vs. Long-Term Loans
The law provides for two loan types, governed differently.
| Short-Term Loan | Long-Term Loan | |
|---|---|---|
| Approving body | SLP partners (partner banks and institutions) | The UniFAST Board |
| Repayment timing | Within the loan term — typically the academic year | Begins after employment, on reaching the Compulsory Repayment Threshold |
| Interest | Zero if paid within the term | Set by the UniFAST Board |
The short-term loan in practice
- Maximum loanable amount: ₱60,000 per program cycle
- No interest if paid within the loan term
- Available to students enrolled in private colleges and universities
- Repayment is expected within the school year — borrowers settle before graduating
This is why take-up is low. The short-term loan requires you to repay in full before you graduate — while you are still a student with no salary. That is precisely the design choice that fixed the old program’s collection problem, and precisely the reason students hesitate. Go in understanding that it is a bridge across a semester, not a defer-until-you-earn arrangement.
The long-term loan and the Compulsory Repayment Threshold
Long-term loans work on an income-contingent basis. Under the law’s Implementing Rules and Regulations, repayment commences only once the borrower secures gainful employment with earnings that reach the Compulsory Repayment Threshold (CRT), which the UniFAST Board sets and periodically reviews.
Repayments are structured as monthly installments and integrated into the borrower’s SSS or GSIS contributions where the borrower is in a covered sector. For borrowers outside SSS or GSIS coverage — self-employed professionals, overseas Filipino workers, and emigrants — the UniFAST Board issues tailored guidelines for direct repayment.
To make this enforceable, UniFAST is mandated to run a tracking system for long-term student-borrowers and may enter agreements with the BIR, GSIS, SSS, NBI, DFA, and overseas employment authorities. In other words: the government can find you. Treat a long-term SLP loan as a genuine legal obligation, not a soft grant.
Who Should Consider the SLP
The SLP targets students whose household income exceeds the thresholds for free tuition or non-repayable subsidies, and who are enrolling in priority programs at recognised private HEIs.
Work down this order before borrowing:
- Free Higher Education at an SUC or LUC — costs nothing, no income test. Check this first.
- Tertiary Education Subsidy — non-repayable, and reaches private HEI students.
- CHED scholarships, DOST-SEI, provincial and private grants — also non-repayable.
- Student Loan Program — only after the above are exhausted or unavailable.
A loan is the last resort by design. Never borrow before confirming you are genuinely ineligible for a grant, and check whether your course appears on the CHED priority courses list, since eligible programs are drawn from the CHED Registry of Programs.
How to Apply
- Confirm your school is a CHED-recognised private HEI and your program is eligible.
- Contact your school’s scholarship or financial assistance office. Many private HEIs coordinate SLP applications directly, and this is the fastest route.
- Go to your CHED Regional Office or the UniFAST Secretariat for current application forms and the loan cycle schedule.
- Prepare your documents — enrolment records, grades, valid ID, and proof of household income.
- Meet the due diligence requirements. For short-term loans, applicants must also satisfy the criteria of the partner banks and institutions funding the SLP.
- Wait for processing. Applications are reviewed within roughly 30 days.
- Understand disbursement. Approved loans are released to the private HEI for tuition and other school fees, with any remaining balance released to the student.
Before You Sign
- Get the repayment date in writing. The difference between zero interest and accrued interest is whether you pay within the term.
- Confirm which loan type you are being given. Short-term and long-term have entirely different repayment triggers.
- Ask what happens if you fail to repay on time. Interest applies once the interest-free window closes.
- Do not borrow more than you need. The ₱60,000 ceiling is a maximum, not a target.
- Keep every receipt and acknowledgement. Repayment disputes are resolved on documentation.
Frequently Asked Questions
How much can I borrow under the SLP?
The short-term loan offers a maximum of ₱60,000 per program cycle for students in private colleges and universities.
Is the UniFAST student loan interest-free?
The short-term loan carries no interest if repaid within the loan term. Miss that window and interest applies. Long-term loan interest is set by the UniFAST Board.
When do I have to repay?
Short-term borrowers are required to pay within the school year, before graduating. Long-term repayment begins once you are employed and your earnings reach the Compulsory Repayment Threshold set by the UniFAST Board.
Can I use it for a review course or law school?
Yes. The SLP covers undergraduate studies, licensure examination reviews, and graduate studies including medicine and law — areas free tuition does not reach.
Is it available to state university students?
The program is aimed primarily at students in private HEIs, since SUC and LUC undergraduates already receive free tuition under RA 10931.
What replaced the Study Now, Pay Later Program?
The SLP. CHED discontinued SNPLP in 2018 because repayment collection had largely failed. The SLP’s requirement to repay before graduation is the direct response to that.
How is repayment collected?
For long-term loans, monthly installments are integrated into SSS or GSIS contributions where applicable. Self-employed borrowers, OFWs, and emigrants follow separate UniFAST guidelines for direct repayment.
Should I take a loan or wait for a scholarship?
Exhaust non-repayable options first — free tuition at an SUC, TES, and scholarship programs. A loan creates a legal debt; a grant does not.
Sources: Republic Act No. 10931 and its Implementing Rules and Regulations, CHED-UniFAST program materials, and reported CHED statements on the Student Loan Program. Verified September 2026. Loan ceilings, interest terms, and the Compulsory Repayment Threshold are set and periodically revised by the UniFAST Board — confirm current terms with your CHED Regional Office or the UniFAST Secretariat before borrowing.