Republic Act 12077: Providing Relief on Student Loan Payments During Calamities

Republic Act No. 12077, also known as the "Student Loan Payment Moratorium During Disasters and Emergencies Act," is a recently enacted Philippine law approved on December 6, 2024. This Act provides much-needed financial relief to students and their families who are grappling with the aftermath of disasters and other emergencies.

The core purpose of RA 12077 is to alleviate the financial burden on students with outstanding loans during times of crisis. Recognizing that natural calamities and other emergencies can severely impact the capacity of students and their families to meet their financial obligations, the State has mandated a temporary suspension of student loan payments to allow them to prioritize recovery and rebuilding their lives.

Key provisions of Republic Act 12077 include:

• Mandatory Moratorium: The Act provides for a mandatory moratorium on the payment of all fees, charges, and costs related to student loans.
• Coverage: This moratorium applies to students enrolled in State Universities and Colleges (SUCs), Local Universities and Colleges (LUCs), private Higher Education Institutions (HEIs), and public and private Technical-Vocational Institutions (TVIs). The student's residence must be located in a barangay, municipality, city, province, or region under a State of Calamity or State of Emergency as declared by the President of the Philippines or the local sanggunian.
• Covered Loans: The moratorium covers student loans incurred for higher education and technical-vocational education and training (TVET) programs, regardless of whether they are administered by the educational institutions themselves or by government entities such as the Unified Student Financial Assistance System for Tertiary Education (UniFAST) Board or the Commission on Higher Education (CHED).
• No Penalties or Additional Interest: Crucially, the Act stipulates that no penalties, surcharges, or additional interest shall be imposed on the outstanding student loans during the period of the moratorium.
• Duration of the Moratorium: The moratorium will be in effect for a reasonable period during and after the onset of the disaster or emergency, as defined by the appropriate authorities and the implementing rules and regulations of the Act.

By enacting RA 12077, the Philippine government demonstrates its commitment to supporting students and ensuring that their pursuit of education is not derailed by unforeseen crises. This law provides a vital safety net, offering temporary financial respite to those most affected by disasters and allowing them to focus on recovery without the added pressure of immediate loan repayments. The implementation of this Act is expected to provide significant relief to countless students and families in times of great need.