LEGAZPI CITY— The Provincial Government of Albay is borrowing P700 million from the Land Bank of the Philippines to finance a scholarship program that seeks to produce one college graduate per family in the province.
The program was a brainchild of Gov. Joey Salceda, who said it was part of his “education-driven development” plans for Albay.
The program, Salceda said, would encourage more young people to study, increase enrolment in colleges by at least 40 percent and produce more graduates.
Salceda, once the closest economic adviser of President Macapagal-Arroyo, signed a loan agreement with Gilda Pico, Landbank president and chief executive officer, at the bank’s head office in Manila.
The bank would charge 8 percent interest per annum for the loan which is payable in 10 years. The Albay provincial government would start paying two years after the loan contract’s effectivity.
The bank would release the money in tranches depending on the number of students that would enrol in a year.
The Albay provincial government quoted Pico as commending Salceda for the program.
Under the program, called Albay Higher Education Contribution Scheme, the provincial government would pay for half of a beneficiary’s college education and reimburse the other half that the student paid upon the student’s graduation.
Among the schools where program beneficiaries are expected to enrol is Bicol University.
12,000 beneficiaries
This year alone, the province will pay for tuition of over 12,000 college freshmen until they graduate.
“I would have placed this amount in infrastructure. But I believe diplomas give better economic returns than roads and bridges,” Salceda said.
He said a well-educated constituency has so much social payback and economic benefits.
“It expands their labor mobility. They will seek better jobs,” said Salceda.
“The difference in economic return between an elementary graduate and a secondary graduate is about seven percent. But the differential between a college graduate and a high school graduate is about 21 percent,” he said.
He said with diplomas, graduates in the province would be able to find jobs elsewhere and not cramp the small jobs market of Albay.
“Diplomas are like visas,” he added.
Education department
Albay is currently the only province in the country with a Provincial Education Department, known earlier as Education Quality for Albayanos, which was created by an ordinance.
The department has a regular staff approved by the Civil Service Commission and the Department of Budget and Management.
Salceda said Albay has committed over 17 percent of its annual budget for education subsidy.
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