I don't have an educational background on Economics but I guess everybody whether in America, Asia or Europe is affected by the global financial crisis. Two nights ago I heard from the news that there are private schools that will have a tuition fee increase this coming 2009-2010 school year.
As parents, we cannot sacrifice the quality of our children's education. There are parents who would give up and transfer children to public schools but some still prefer sending their kids to private schools. We always allot a budget for our children's education but sometime we have financial emergency that without any choice we use our savings.
I thought of an options that we can take just in case we don't have someone whom we can run to in this kind of situation.
1. Installment Basis
Most schools offer installment plans. I got two kids, normally we paid our children's tution fee quarterly. Just imagine how much financial stress we have, my husband and I works as a regular employee only.
2. Government Pension Fund
If you are a member of any government pension fund like Social Security System (SSS) you can have a salary loan payable in two years.
To be able to borrow a loan equivalent to a month salary, you must have posted 36 monthly contributions prior to the month of filing for the loan. You can borrow 2 months salary if you've made 72 contributions. It would be best to contact SSS to find out the maximum loan amount.
3. Bank Loans
Banks offer a non collateral personal loan which you can use for the children's tuition fee. My friend told me that Chinatrust Bank offers personal loan with 12, 18, 24, 36 months flexible terms at a very competitive rates.
Personal loans can be much easier for families to manage since there is a specific repayment plan which can be incorporated in your budget.