Education remains a top priority for many families, but it also represents one of the largest financial commitments they face. A study by the Philippine Institute for Development Studies (PIDS) shows that total education spending in the country more than doubled between 2005 and 2019, increasing from around half a trillion pesos to approximately PHP 1.2 trillion. Despite government support, households still covered the majority of these costs, contributing about 54.5% of total education expenses in 2019.

Fortunately, managing these costs is now simpler due to more accessible financial tools and lending options. As the #1 digital bank in the country, Maya offers flexible credit and loan solutions that can help parents stay on top of school payments and related expenses. Still, borrowing for education should be approached thoughtfully to ensure the funds are used efficiently and don’t lead to unnecessary debt. In this article, we’ll go over some practical tips on how to use your loan wisely to support your child’s education while keeping your finances healthy.

1. Borrow Only What You Really Need

Before applying for a credit line or a personal loan, take time to list all your child’s school expenses, such as tuition, books, uniforms, and transportation. Avoid borrowing more than you actually need, since doing so only increases the interest or fees you’ll have to pay. Knowing your exact costs helps you take out a loan that fits your needs without stretching your budget unnecessarily.

To help with this, Maya provides lending options suited to different school expenses. For smaller costs like educational trips or project materials, Maya Easy Credit can be enough. It’s a virtual credit line that lets you borrow up to PHP 30,000, payable within 30 days and with service fees as low as 3.99%.

Meanwhile, if you need a larger amount to cover a full semester or school year’s tuition, Maya Personal Loan allows you to borrow up to PHP 250,000, payable up to 24 monthly installments and with add-on rates that start at just 0.77% per month.

Both Maya Easy Credit and Maya Personal can be applied for directly through the Maya app with minimal paperwork, helping you access the funds you need quickly and conveniently. Note that all loan or credit line applications are subject to credit evaluation.

2. Check for School Discounts and Financial Aid Options

Before finalizing your loan, check with your child’s school to see if they offer discounts for paying tuition in full or early. Some schools also provide sibling or loyalty discounts that can significantly reduce your total bill. Using a loan to pay tuition in full can let you take advantage of these benefits instead of paying per quarter or semester at a higher overall cost.

While exploring payment options, also consider scholarships or financial aid programs from the school or local government. These can help lower the amount you need to borrow in the first place. Every peso you save from discounts or assistance is one less peso you’ll have to repay later.

3. Compare Loan Options Carefully

Not all loans and credit options are the same, so taking the time to compare them can help you find one that best fits your needs and budget. Look at interest rates, repayment periods, and any additional fees before deciding. Choosing a reliable provider with clear terms makes it easier to manage your payments and avoid unnecessary stress.

A good feature to look for in a loan is one that doesn’t require collateral. This is where Maya Personal Loan stands out among many loan options today. Not only is it an easy personal loan to apply for, but it also lets you borrow funds without putting any of your assets at risk as collateral. This means you can focus on repaying comfortably and with peace of mind. It’s a simple and accessible choice that meets the needs of families looking for a safe and reliable way to manage school expenses.

4. Match the Loan Term with Your Payment Capacity

Your repayment plan should fit comfortably within your monthly budget to avoid financial strain. That’s why it’s crucial to choose a repayment term that keeps your finances manageable and prevents added pressure on your day-to-day expenses.

With Maya, you have the flexibility to select payment terms that suit your situation. If you only need a small amount and prefer to settle it quickly, Maya Easy Credit’s 30-day payment period helps you avoid long-term commitments. On the other hand, if you’re borrowing a larger amount and could use more time to spread out your payments, Maya Personal Loan offers repayment terms of 6, 9, 12, 18, or 24 months, with add-on rates starting at just 0.77% per month. You can even use the loan calculator on Maya’s website to check your estimated monthly payments and ensure they fit your budget before applying.

5. Prioritize Tuition and Essential School Needs First

Once your loan is approved, make sure to use the funds for their intended purpose immediately. Pay the tuition first, then cover other school-related costs such as books and supplies. Avoid the temptation to use the loan for personal or household expenses, even if it’s just a small amount. This ensures the money truly supports your child’s education and doesn’t get mixed up with other financial priorities.

6. Keep Track of All Expenses and Payments

Keeping a simple record of how you use your loan helps you stay organized and avoid overspending. Use a notebook or app to track every payment made to the school or for supplies, and note how much of the loan remains available. Tracking your payments also helps you stay aware of upcoming due dates, so you can avoid late fees or missed payments. This habit keeps your finances in check and helps you build good financial discipline for future loans.

7. Prepare a Backup Plan for Repayment

Using a loan wisely also means planning ahead for repayment challenges, and having a financial safety net ensures your loan doesn’t become a burden. Set aside an emergency fund or maintain enough savings to cover at least a few months of expenses. Being prepared for unexpected situations helps you stay on top of your loan repayments without putting your family’s budget under pressure.

With Maya, even borrowing can help you grow your savings. If you have a Maya Savings account, using Maya Easy Credit can boost your base interest rate from 3.5% p.a. up to 15%. Paying tuition or school supplies with your Maya Wallet also helps increase that starting rate. This means that while you’re covering your child’s school expenses, you’re also building your savings, giving you a reliable financial cushion when you need extra support.

Borrowing wisely and managing your loan responsibly ensures your child’s education stays on track without straining your finances. Let the tips above guide you in putting every peso to good use so your loan truly serves its purpose. With the right mindset and a reliable lending partner like Maya, you can confidently manage your child’s school expenses while keeping your family’s financial goals on track.