Manila: To support public school teachers and personnel struggling with finances, the Department of Education (DepEd) on Thursday secured a partnership with the Landbank of the Philippines. The agreement provides loan assistance arrangements to about 1,000 teaching and non-teaching personnel nationwide, in line with the directives of President Ferdinand R. Marcos Jr. to ensure the well-being of teachers and teaching staff in the basic education sector.
According to Philippines News Agency, DepEd Secretary Sonny Angara stated that the move seeks to support struggling teachers and staff who have existing debts with other banks. He emphasized that teachers who are serving daily to uplift the future of the youth must not drown in debt. Under the arrangement, Landbank will be allowed to refinance the existing loans of teachers and DepEd personnel from private lenders. This enables them to recover a more manageable take-home pay while easing the burden caused by mounting debt obligations.
Financial stress is seen to affect educators' productivity, according to the DepEd. Angara highlighted that if teachers feel more secure, they can focus more on their most important duty - teaching and guiding learners. For her part, Landbank President and CEO Ma. Lynette Ortiz said the initiative is part of the government's efforts to improve services to educators. She noted that these efforts are part of building a more complete financial relationship with teachers who have historically been underserved by the formal banking system.
Under the partnership, a 0.5 percent service fee on remittances for public school teachers and non-teaching personnel will be waived. A lower interest rate for loan assistance is also set at 6.5 percent per annum, which is much lower than unaccredited private lending institutions' arrangements. Some borrowers in private lending institutions are paying as high as 3 percent interest per month, according to the DepEd.
Overall, the partnership covers 1,000 garnished salary loan accounts, amounting to PHP500 million. Under the proposed arrangement, affected personnel may once again receive the minimum PHP5,000 net take-home pay after previously receiving little to no salary due to heavy deductions and garnishment.
