97,600-Peso SSS Loan Penalty, Interest + Principal Deducted From Pension

SSS Loan Penalty

Do your best to pay your SSS loan on time, so it will not balloon, and so you can receive all your benefits.

My close relative failed to pay her SSS loan on time, so when it was time for her to receive her SSS pension, konti na lang ang nakuha niyang 18-month pension lump sum. Malaki ang nabawas. Buti na lang meron pang natira.

When did she borrow and how much? Around 7 years ago, she applied for an educational loan totaling 55,000 pesos for her daughter’s tuition fees. And she was not able to pay. Hindi rin siya naka-apply for loan condonation, kasi hindi kasali sa 2016 and 2018 loan penalty condonation programs ang Educational Assistance Loan Program (EALP). Yong old educational loan program lang ang isinali nila.

When she turned 60 years old and applied for her retirement benefit this year, her original loan of 55,000 pesos has already ballooned to 97,600 pesos!

Total loan penalty was 29,126 pesos and total interest was 13,474. Overall total was 42,600.

Ang final loan amount? Original loan amount of 55,000 plus 42,600 in penalty and interest = 97,600

Itong 97,600 pesos ay buong ibinawas sa 18-month retirement lump sum niya. Sayang talaga na hindi niya nabayaran noon. 

Well, ang consuelo na lang niya is naka-graduate ang anak niya, at maganda naman ang work and family life.    

Other Actual Cases of Unpaid SSS Loans that Ballooned to Huge Amounts

  1. An SSS member filed his retirement claim at age 68 because he was able to complete the required 120-month contribution only at this age. Sadly, SSS found out he had an unpaid loan balance, and it had already ballooned to 78,764 pesos.

    As what SSS does in cases like this, it uses the member’s monthly pension to pay off the unpaid loan.  It’s so sad that at age 70, he has not yet received any pension, as his monthly pension is only 2,200 pesos a month, and it will take a total of 36 months to be able to fully pay off his unpaid loan balance of 78,764 pesos. (Reference: SSS Newsletter, 4th Quarter 2018)
  2. Sa Facebook page ng SSS, kinopya ko itong mga posts from some SSS members:
    – “nag loan ako nong 2005, 17k na-loan ko, hanggang ngaun dko pa nabayaran umabot npo ng 45k”
    – “paano po maglakad ng lump sum? may utang po ang papa ko nung araw pa 1k tapoz umabot na po ng 23k. may makuha pa po ba sia?”
    – “bakit yung sakin 10k lang loan ko, tapos kung magpareconstruct 21k pa rin babayaran ko for two years”
    – “3,500 na loan ko noon naging 24 thousand ngaun. nagaply aq ng condonation naging 10 k. nakapaghulog aq ng apat na beses, kaso natigil ang pagbbyad ko kc mga naihulog ko noong nagpa folllow up ko hnd pumasok lahat, kya nkakainis maghulog. tanong ko po kung pede pa ba ipagpatuloy ulit na bayaran. sayang nmn ang mga nihulog ko kung hindi matapos kakainin lng ng interes ang pinagpaguran ko.”
    – “nag-loan ako nong 2002 ng 15k, nakaltasan lang sya ng nsa 8k, ung natirang 7k naging 31k. kinaltasan nila ng 17k dahil sa penalty condonation. ang 14 k un ang babayaran ko ng 2 yrs”

Tips to Avoid a Huge SSS Loan Penalty

  1. First, hanggang kaya mo pa, hanggang meron pang mas okay na paraan, don’t borrow. Don’t apply for an SSS loan. Kung kelangan ng pang-tuition, magtanung-tanong ng educational assistance. Last resort na lang yong SSS Educational Loan program. Besides, itong current SSS educational assistance program ay out-of-budget na. Inaantay pa yong mga payments ng mga naunang borrowers.

    Itong close relative ko, hindi nagtanung-tanong. Na-miss niya yong educational program ng city government niya. Meron palang available! At itong educational program na ito ay hindi lang para sa mga super talino. At hindi rin lang para sa mga nag-aaral sa public universities/colleges. Almost all are qualified! Tsk tsk tsk Sayang, sana hindi nakautang sa SSS.

2. If you’re Employed, important na naka-register ka sa SSS Online. Dito mo ima-monitor kung yong mga deductions sa sahod mo para sa SSS monthly loan payments mo ay ibinabayad ng company mo sa SSS. Maaaring delayed ang posting ng payment mo sa SSS Online account mo, kasi quarterly ang submission ng company reports to SSS. Pero after a few months, makikita mo kung nagsa-submit ng payments ang company mo.

Marami akong nababasa sa Facebook groups o sa mga comments section na yong company or agency nila ay hindi pala ibinabayad sa SSS yong kinakaltas sa sahod nila. At nahihirapan na silang habulin ang company o agency kasi maraming taon na ang nakalipas. Wala nang records sa company. O yong company ay nagsara na.

By the way, kahit hindi ka Employed (maaaring OFW, Self-Employed, Spouse or Voluntary ka), important din na mag-register ka sa SSS Online. 🙂

3. Kapag nag-transfer ka sa another company, at hindi ibinawas ng former company mo ang SSS loan balance mo sa last pay mo or sa back pay mo, do not forget to submit your updated loan balance sa new company mo. Ito ay para ituloy ng new company mo ang pag-deduct sa sahod mo for your monthly SSS loan payments. Kung isipin mong ikaw na lang ang magbayad diretso sa SSS, mahirap. Kasi baka makalimutan mong magbayad, o baka i-order mo na lang sa Lazada or Shopee kesa ibayad sa SSS. Sa bilis ng panahon, hindi mo namalayan, super laki na yong SSS loan balance mo.

4. Kung merong SSS loan penalty condonation program, at na-approve ang application mo, tingnan mo yong mga deadlines at due dates sa condonation contract. Super important yong first due date and last due date. Make sure na mabayaran mo ang first installment on or before due date. Nasa contract yan. Puedeng reason yan for voiding the condonation contract.

And make sure na mabayaran mo ang total amount due (Full Loan Amount) on or before last due date. Babawiin ng SSS ang condonation kapag hindi mo nabayaran ang loan in full sa last due date. Ang masaklap pa, hindi ka na puedeng mag-apply sa susunod na condonation programs.

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