COLLEGE OF BUSINESS, ACCOUNTANCY, AND

ADMINISTRATION
Financing Futures: Assessing the Student Sufficiency
on Educational Loans for Tertiary
Studies Accessibility
*at least 10 pages*
atleast 3 conceptual lit & 3 research lit per variables
3– student sufficiency on educational loans
3– tertiary studies accessibility

CHAPTER 2
Review of Literature and Studies

This chapter presents the researcher's accumulated data from a range of sources,
including relevant literature, studies, published and unpublished theses, journals, and other
applicable resources.

Conceptual Literature

Student Sufficiency

Studies on low-income and minority students' perceptions of financial aid and how
those perceptions influence their decisions have been conducted, either entirely or in part.
(Dynarski, 2019). Nonetheless, there isn't much research done in this field. Hence, despite
the fact that studies have shown that low-income, minority, and first-generation students
have significantly different access to information resources, little is known about how these
disparities influence these students' decision-making. For instance, low-income students
may investigate their options but feel that the amount of financial help offered is insufficient.
When there were relatively not many resources left, it's likely that these students were able
to cover their college costs with their present sources of income or savings, although at
higher need levels, their current income or savings would not have been enough.

A study by Salmi and D'Addio (2020) identified that the equity promotion policies
were among those necessary for advancing inclusive access and success in higher
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education. It is through the non-monetary interventions like outreach, affirmative action,
retention programs, and specialized institutions that the effectiveness of the financial aid
programs is established, such as grants and loans. These policies also have an effect on
underrepresented groups, with financial barriers highlighted by the authors as the most
stringent challenge in relation to equitable access to higher education. Dovetailing with the
theme, "Assessing Student Sufficiency on Educational Loans for Tertiary Studies
Accessibility", where educational loans are among the key financial aids developed to
mitigate the financial barriers to higher education. In fact, Salmi and D'Addio have proven
the fact that financial support is just a means to increase access, and non-monetary
measures are equally important for the successful attainment of retention and completion for
deprived students. In that sense, the totality of this approach of financial aid and targeted
support would be instrumental in the all-inclusive and fair development of higher education
terrain.

According to the study by Alla Sokolovska, Larysa Rainova, and Tetiana Zatonatska
on "Loan and Grant Support for Students in the Context of the Diversification of Funding
Sources for Higher Education," educational loans play a crucial role in providing direct state
support to students in European countries, including Ukraine, to enhance tertiary studies
accessibility. The statistics reveal that Ukraine previously had a preferential state lending
program for students, but since the year 2011, such contracts for state lending have been
reduced to a minimum, so that students who continue their studies at a higher educational
level do it under a state unsupported contract. The study suggests the need to restore and
improve such a program by introducing such reforms as those adjusting loan interest in
accordance with inflation; setting a minimum annual loan payment as a percentage of the
minimum salary; and redistributing the risk of non-repayment among the state, the borrower,
and his or her parents. These recommendations are made in the direction of promoting
commercial growth through educational loans that are partially state-subsidized and
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scholarships for needy students, orphans, and disabled children. The general aim is to test
student sufficiency in terms of educational loans to improve access to higher education.
More importantly, this underscores the use of structured support mechanisms and flexible
funding programs for students to be academically successful.

Educational Loans

A student loan is a sort of financial aid that helps students accomplish their
education. A student loan allows you to repay the debt while studying or after you graduate
by making monthly payments. Student loans typically have lower interest rates than other
kinds of loans. However, they have a longer repayment time, making it difficult to repay
promptly. Several learners take out student loans to finance their educational expenditures,
such as tuition, books, and living expenses. The amount offered varies according on the
borrower's financial situation, academic history, and school. Students with outstanding
academic records and financial requirements may be eligible for high student loan amounts.
(DiaryNiGracia, 2022)

The research paper "Modelling Higher Education Financing Reform for Ireland" by
Bruce Chapman and Aedín Doris, forms an important first step in determining whether the
level of all educational loans for tertiary studies is at a level which is likely to provide open
access to students. The paper discusses some potential student loan schemes for Ireland,
especially under the general heading of income-contingent loans (ICLs). Such an approach
is consistent with the objective of sufficiency evaluation for the students and access to the
loans by simulating the outcomes of different loan designs on Irish graduates. Building on
life-cycle earnings distribution data and mortgage-type loan versus income-contingent loan
scenarios, the study shows that mortgage-type loans can lead to unfeasibly high repayment
rates for low-income graduates. However, ICLs with the repayment plans contingent upon
the income of a borrower when it rises above a given threshold are considered to be much
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more practical and fair. The link underlines the need for designing student loan schemes
that are cheap enough for graduates but at the same time financially viable for the higher
education sector.

A loan used to pay for university tuition or other relevant costs associated with higher
education is known as an education loan. During the course of a borrower's degree pursuit,
education loans are meant to help pay for living expenses, books and supplies, and tuition.
Due dates tend to be put off for a minimum of six months following graduation and,
contingent upon the lender, during the student's time in college. There is another term for
this deferment period: the "grace period." (Segal, 2022)

ErudiFi, the tech-enabled company in charge of running Bukas PH and offering

affordable education support across Southeast Asia, presented its proposal following the
completion of a $5 million Series A investment that was co-led by Qualgro and Monk's Hill
Ventures. The company claims that a reliable and easily accessible solution for students
and institutions is offered by its tech-enabled client and partner onboarding process.
Additionally, there is a problem with student retention throughout Southeast Asia, which
includes the Philippines. Dropout rates in many schools are between 10 and 15 percent
every year, mainly because of financial challenges that students and their families
encounter. In response to these issues, ErudiFi has introduced a value-added service that
helps school partners with recruiting and retention by giving partner schools a means to
monitor payments and receive real-time information. (Chiles-Magkilat, B., 2021)

In Southeast Asia, finance for education presents a huge opportunity. ErudiFi is a

technology and data-driven platform that enables higher education institutions to better
manage and track their student flow while also facilitating finance access for a greater
number of students. According to Heang Chhor, Managing Partner and creator of Qualgro,
“The Qualgro team is eager to collaborate closely with ErudiFi to broaden their reach, as
they seek to establish reliable partnerships with universities and other partner institutions as
they grow in the area.”
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The literature on student loans is divided into several subcategories. Several
publications address questions about the effect of financing on specific academic behaviors
and outcomes, such as semester GPA. Other academic results may be useful to grasp as
we progress with our research. A student loan raises the amount of credits taken by an
average of 0.23 per semester. When students do not borrow every semester, they take 1.2
more credits in the semesters that they do borrow. Semester credits fall by around 0.5
credits for every 10% increase in the loan-to-tuition ratio (Schmeiser, Stoddard, & Urban,
2015).

Tertiary Studies Accessibility

The study "Inequalities in Higher Education Access and Completion in Brazil" by

McCowan and Bertolin (2020). While enrollment in the Brazilian higher education system
has experienced quite some considerable growth since the late 1990s, persistent
inequalities in access and completion of higher education exist. This points out that
availability of places has actually increased due to federal policies, and through affirmative
action and educational loans, improvements in accessibility have been achieved. However,
clear stratification still remains with low-income students, African descendants, and those
whose parents are less educated most often being sent to poor quality and for-profit
institutions that have less prospects in the job market. These trends underline the
importance of sufficiency in the students' educational loans on access to tertiary studies.
Results of this study point toward a broader implication that although educational loans
enhance access to higher education, they are not sufficient to compensate for the much
broader structural inequalities. Such a relation underlines that not only access but also
quality and the value of educational experiences should be considered in a way to address
tertiary education accessibility through financial means.

The study by Mega Wanti and others on "Determining factors of access and equity in
higher education" explained that tertiary studies' accessibility for students can highly be
influenced by some factors. The systematic review collected forty impacting factors from
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thirty-three peer-reviewed journal articles that were mostly from Europe, Australia, and
America and were published between the years 2014 and 2018. The impacting factors are
classified into four levels, namely, governmental, pre-university education, university, and
student. While a lot of discourse was on government policies and financial support, the
importance of social support on the part of the peers of the student, family, teachers, and
university officers as an important ingredient in access and equity facilitation was also
highlighted in the studies. The social support can possibly lead to better participation at the
tertiary level in education and enable students to negotiate the academic and social
challenges that such involvement might present. The research points to the broader support
systems needed, the programs that would target basic academic skills of the less
advantaged, and the needs to develop links within educational institutions to enhance
opportunities for tertiary studies for all students.

Numerous studies have looked at how the law impacts HEIs' financial sustainability,
access to higher education, and student outcomes. According to research from the
Philippine Institute for Development Studies (PIDS) (Ortiz et al., 2019), the law has made
higher education considerably more accessible. The research indicates that in the first year
following the law's implementation, there was a 15% increase in the number of students
enrolling in public higher education institutions. Additionally, the law was found to have
enhanced student results; students who enrolled during the law's implementation
outperformed those who did not.

According to Ortiz, authorities acknowledge that funding education promotes societal

advancement and prosperity in addition to educating individuals. The governments' objective
is to reduce socioeconomic gaps and create opportunities for upward mobility by
emphasizing fair access to higher educational opportunities. To foster innovation, increase
competitiveness in the global economy, and produce a competent labor force, higher
education must be easily accessible. For governments hoping to create inclusive and
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sustainable societies, guaranteeing equitable and open access to high-quality tertiary
education thus continues to be a core priority. Access to education can still be impeded for
some groups, including refugees, people with disabilities, and members of marginalized
communities, even in nations where higher education is universally available. (UNESCO,
2020).

According to the study "Process evaluation of the universal access to quality tertiary
education act (RA 10931): Status and prospects for improved implementation" by Ortiz et al.
(2019), the Universal Access to Quality Tertiary Education Act (UAQTE), or Republic Act
10931, plays a pivotal role in increasing access to tertiary education in the Philippines by
providing free tuition and other benefits to eligible students. Despite the positive impact it
has brought, the educational loans are still challenged to be effectively handled concerning
tertiary studies accessibility. The act is to relieve the students of financial burdens,
especially those from the low-income households, through focusing on free tuition, subsidy
to education, and student loan programs. However, for a comprehensive analysis of student
sufficiency in acquiring educational loans and ensuring broader access to tertiary studies, a
study on the effectiveness of implementation of these loan programs, among other parts of
the law, is warranted. This would enable it to adequately address impediments in the access
of educational loans, which all students should have equal opportunities to at the tertiary
level of education.

The issue of paying university tuition is becoming more and more global. The
Philippine authorities, defying other regulatory agencies, have lately instituted a subsidy
program designed to pay the tuition costs of Filipino students enrolled in all State
Universities and Colleges (SUCs) and Local Universities and Colleges (LUCs). The
enactment of the Universal Access to Quality Tertiary Education Act occurred on August 3,
2017. Encouraging the enrollment of individuals from a variety of socioeconomic
backgrounds in higher education is the main objective of the law, which aims to provide
adequate funding for this purpose. Applicable to all tertiary educational institutions, the
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subsidy is for first undergraduate degrees. Further, for those with the lowest incomes, the
Act increases the availability of income-contingent loans. The introduction of the policy has
raised concerns that students may migrate, or even emigrate, from private to public
educational institutions.

Research Literature

In the passage you provided, it discusses a qualitative study that delves into graduates'
perceptions of the value added to their lives by borrowing money for their education. The
evidence supporting this comes from five themes that emerged in the study, which were
analyzed through cognitive dissonance theory. These themes indicate that while graduates
generally believe taking out student loans for college was beneficial (as they could pursue
higher education and potentially secure better job opportunities), they also express feeling
burdened by the financial costs of repaying those loans.

The participants in the study shared experiences where they acknowledged both positive
aspects (such as increased earning potential and personal growth) as well as negative
consequences (like stress from loan repayment obligations). This internal conflict aligns with
cognitive dissonance theory, where individuals hold conflicting beliefs or attitudes leading to
psychological discomfort.

Overall, this research provides valuable insights into how student loans impact graduates
beyond just financial considerations. It sheds light on emotional and mental burdens
associated with loan repayment post-graduation. Additionally, it highlights a need for further
investigation into how policies can be improved to support students who take on debt for
higher education.
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Synthesis

Research Gap
no studies yet in cabuyao
focused in a specific private loan provider (may nalagay na ko dito, di ko lang pa
nalilipat dito heheh)