Manila: To ease repayment terms for teaching and non-teaching personnel, the Department of Education (DepEd) said it has extended the maximum repayment period for salary loans to seven years. The updated policy, under DepEd Order 020, series of 2026, is more flexible than the current five-year-term loan repayment under the Automatic Payroll Deduction System (APDS).
According to Philippines News Agency, DepEd Secretary Sonny Angara stated that the measure is part of the government's efforts to ease the financial burdens of teachers and personnel in public schools. Angara emphasized that this initiative aligns with the directives of President Ferdinand R. Marcos Jr. to support educators' welfare. The extended loan term, from the previous three and five years to seven years, aims to provide lower monthly deductions and increase the take-home pay for families.
Qualified borrowers may avail themselves of the expanded repayment option, while those with existing loans can apply for restructuring terms. However, the extended repayment period remains subject to the credit assessment and approval of the APDS-accredited bank or private lending institution.
To encourage responsible borrowing, all APDS-accredited banks and lending institutions are mandated to conduct financial literacy and loan education programs for DepEd personnel before loan processing and release.
