In UP terms, a sponsor refers to a student's financial support from which he or she gets funding to continue studies in the university. These can be one's own parents, siblings, extended family, your friends a scholarship foundation, an unrelated person, or even yourself as a working student.
When other people act as sponsors they can also assist in taking student loads, and act as a guarantor that the student will be able to pay back the loan when he or she finishes studying. This depends greatly on the student's perceived academic performance; a student with consistent failing grades might find it difficult to have a sponsor vouch for their studies in the university.
Ever since UP has exponentially increase its tuition fees (ToFI), it has become more necessary than ever to have a sponsor for your educational funding. Even with improvements in the STFAP system, many potential students are still unfortunate and are unable to afford UP education due to the lack of a sponsor.