DepEd, GSIS sign agreement to address financial woes of teachers

The Department of Education (DepEd) and the Government Service Insurance System (GSIS) on Monday signed an agreement which aims to enable teaching and non-teaching staff to pay their loans with private lenders.

The signing of the memorandum of agreement was witnessed by President Rodrigo Duterte.

In a press release, it was noted that the deal "seeks to refinance the outstanding loans of DepEd employees with private lending institutions accredited by the agency at a much lower interest rates."

The agreement will also ensure that the GSIS benefits of teachers are preserved and financial capability addressed as the Duterte administration vowed to improve the status of teachers in the Philippines.

Under the agreement, teachers will also undergo a financial literacy seminar in order to guide them in the management and disposition of their funds.

Moreover, DepEd shall also "prioritize the management of GSIS loans over the payment of loans taken by DepEd personnel from lending institutions as well as the deductions from its payroll of the monthly amortization due on the loans they have taken and their GFAL (GSIS financial assistance loan) program until those loans are fully paid."

The project reinforces the issuance of DepEd order No. 38 on July 31, 2017 reiterating the instruction to "prioritize premium and loan payments for GSIS."

The program will be implemented in 12 pilot areas for six months across the country , these are: Batangas, Bulacan, Dagupan, Naga, Cavite, Manila, Quezon City, Bohol, Ormoc, Koronadal, Butuan and Tagum.

Qualified members may borrow up to P500,000 as long as their take-home pay does not fall below P5,000 of their deducted monthly obligation.

The loan is payable in monthly installments for six years at six percent interest rate per annum computed in advance. Payments will be automatically deducted from the borrower’s salary. — BAP, GMA News