Bayanihan to Recover as One Act (BARO Act) 60-day Grace Period

UPDATED AS OF 10/07/20

In compliance with R.A. No. 11494 otherwise known as the Bayanihan to Recover as One Act (BARO Act) and Securities and Exchange Commission Notice dated 21 September 2020 (SEC Notice dated 09/21/20), Bukas will be implementing a one-time 60-day grace period for qualified customers with existing installment plans as of September 15, 2020.

For more information regarding the implementation of the new 60-day grace period, please read our guidelines below.

Covered Areas

All existing contracts as of September 15, 2020.

Frequently Asked Questions

1. What is the BARO Act?
   The Bayanihan to Recover as One Act or BARO Act provides an additional 60-day grace period to all Bukas students with existing contracts as of Sept. 15, 2020. If you are qualified, this means that your scheduled monthly payments will be moved by an additional 60 days. For example, if your next due date falls on October 14, we will move that scheduled payment to December 14. All succeeding payment dates in the original schedule are then adjusted by 60 days.
   
2. Will the grace period be applied to all Bukas customers?
   No. Based on the BARO Act, the 60-day grace period will only apply to customers with existing contracts as of Sept. 15, 2020. If you are qualified, then the grace period will automatically be applied to your account. You may login your Bukas account and check the adjusted repayment schedule by Oct. 23, 2020. If you are qualified but did not get the adjusted schedule, you may reach out to us at [email protected] or send us a message on Facebook.
   
3. Are there additional fees such as late fees, penalties and interest on interests?
   No. There will be no additional interest on interests, late fees or penalties during the grace period to future payments of the borrowers as stated in section 4(uu) of the BARO Act and SEC Notice dated 09/21/20.
   
   However, the chargeable interest based on the outstanding balance of the loan, or ACCRUED INTEREST, shall continue to accrue during the 60-day grace period in accordance with Section 4 (uu) of the BARO Act.
   
4. What is accrued interest? How is this different from “interest on interests” and “late fees”?
   
   Accrued Interest is the amount of interest charged on the unpaid principal due to the payment deferrals and is allowed under the BARO Act. Total accrued interest incurred during the grace period, will be equally split and added to the remaining scheduled payments.
   
   Interest on Interest is additional interest charged on your unpaid loan and your accrued interest. There will be no interest on interest charged as mentioned in the BARO Act.
   
   Late fees are additional fees charged monthly based on the total past due amount. There will be no additional late fees charged for existing and current contracts as of September 15, 2020 with due dates falling before December 31, 2020 as mentioned in the BARO Act.
   
5. What will happen to my monthly dues and repayment schedule after the implementation of the 60-day grace period?
   See below for an example of the changes in your monthly repayment.
   
   Sample Illustration:
   Student availed of a Tuition Installment Plan on Aug. 14, 2020 with the following details:
   Total Principal Amount: PHP 30,000
   Monthly Repayment: PHP 3,025
   Scheduled Repayment: Every 14th of the month
   
   Original Due Date of Next Payment: Oct. 14, 2020
   New Due Date of Next Payment after 60-day Grace Period: Dec. 14, 2020
   Loan Term Extension: 2 months
   Original Maturity Date: August 14, 2021
   New Maturity Date: October 14, 2021
   
   The accrued interest from the grace period will be split evenly on the remaining monthly repayments. Therefore your monthly dues after the grace period will include your original scheduled payment plus a portion of your accrued interest during the grace period. Using the same example above, your adjusted monthly due will be:
   
   Original Monthly Due Amount: P3,025
   Total Accrued Interest during 60-day Grace Period: P1,708.02
   
   Accrued Interest Charged per month for the remaining dues: P1,708.02/ 11 monthly payments = P155.27
   
   Adjusted Monthly Due Amount after the 60-day Grace Period: P3,025 + P155.27 = P3,180.27
   
   If you have availed of the previous grace period during March to May 2020, you may still avail of the additional 60-day grace period as long as your contract is qualified. Below is an example of the computation for your new monthly dues with the additional 60-day grace period.
   
   Sample Illustration:
   Customer availed of a Tuition Installment Plan on Jan. 16, 2020 with the following details:
   
   Original Installment Plan
   Total Principal Amount: PHP 30,000
   Monthly Repayment: PHP 3,025
   Scheduled Repayment: Every 16th of the month
   
   Original Maturity Date: Jan. 16, 2021
   
   Adjusted Installment Plan after 90-day Grace Period from March 2020
   New Monthly Repayment with Accrued Interest: PHP 3,257.91
   Loan Term Extension: 3 months
   New Maturity Date: April 16, 2021
   
   Adjusted Installment Plan after 60-day Grace period from September 2020
   
   New Monthly Repayment with Accrued Interest: PHP 3,420.02
   Loan Term Extension: 2 months
   New Maturity Date: June 16, 2021
   
   As seen from the example above, customers who avail of the initial 90-day grace period and the additional 60-day grace period shall effectively have a 17-month installment plan instead of the original 12-month plan.
   
6. Can I opt out of the 60-day grace period and stick to my current plan?
   Yes, qualified students may choose to opt out of the 60-day grace period and continue with their original installment plan. If you prefer to stick to your originally scheduled payments, you can opt-out of the Grace Period plan by replying to the opt-out SMS we sent to qualified accounts. By opting out, your monthly repayment amount and due dates will remain the same based on your original contract prior to the application of the 60-day grace period.
   
7. How do I opt out?
   If you’re qualified for the 60-day grace period, you will receive an SMS with the opt out instructions. Follow the instructions and wait for an email from [email protected]. The email will confirm that you have opted out.
   
   Please make sure that you opt out on or before Oct. 14, 2020
   
8. I am qualified for the 60-day grace period but I already paid following my original schedule. What will happen now?
   If during the 60-day grace period you decided to pay on the dates of your original scheduled payments, we will put it as an advance for the succeeding payment period and you won’t be charged additional accrued interest for that period.
   
9. I opted out in the previous grace period last March to May. Do I need to opt out again?
   Yes, you need to opt out again for the 60-day grace period even if you opted out in previous implementations.