Government-funded student loan program and pre-need trust fund: Assisting pre-need plan holders of pre-need companies under rehabilitation

• Main Author: Castillo, Eleazar E.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Subjects: Student loans—Philippines; Insurance companies—Philippines; Trusts and trustees—Philippines; Insurance
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/6879
• Institution: De La Salle University

This study looked into the different government-funded student loan programs to help open-ended educational plan holders of pre-need companies under rehabilitation to finance their children’s education. Also the study sought to identify the different courses of actions that the plan holders can set up against the trustees. The study has three primary objectives: to determine which among the government-funded educational loan program that can be availed by the plan holders concerned, to verify whether the open-ended educational plans, as modified by the rehabilitation plans by the five pre-need companies, can be assigned or be used as a security for a loan, and to determine the courses of action that can be set up by the plan holders to reach the assets of the trust fund or of the trustees. The researcher used qualitative research and legal research. Qualitative research was used to determine the willingness of banks to accept pre-need educational plans as security for a loan. On the other hand, legal research was used in determining which of the various modes presented in this study suitable for the needs of the plan holders concerned. Also, this method was used in finding ways for the plan holders to reach the assets of the trust fund and of the trustees. Three main conclusion were reached: the government-funded student loan programs could not accommodate all the plan holders due to the socio-economic status of the plan holders, pre-need educational plans are not accepted by banks as security for a loan, and plan holders can ask the court for removal of the trustee, file a claim against the assets of the trust fund, and hold the trustee personally liable in case of mismanagement.