Briones Answers Issues on Teachers’ Debts | DepEd Press Release

Briones noted that the issue of teachers’ debts is a decades-old drama starring the teachers as borrowers, the Government Service Insurance System (GSIS) and private lending institutions (PLIs) as lenders, and the DepEd, which deducts loan payments authorized by teachers to be paid to GSIS and PLIs.

She further noted that of these four actors, the teacher/borrower who spends the borrowed money, and the GSIS and PLIs who earn interest benefit from the borrowing activity, DepEd benefits the least. It merely deducts loan payments on the basis of authorizations issued by the teacher/borrower.

Briones reiterated that the DepEd is exploring measures that will enable teaching and non-teaching personnel to manage their finances to prepare for a better future. These are reduction of interest rates on loans through the expansion of the DepEd Provident Fund and coordination with GSIS on loan buyouts, which will restructure an employee-borrower’s PLI loans. GSIS will offer lower interest rates on a longer payment term.

Briones Answers Issues on Teachers’ DebtsThe damage of overborrowing on lives of teachers and their families has been going on for years and it can no longer continue. In 2016 alone, 26,000 teachers could not avail of their retirement benefits due to unpaid loans. DepEd has initiated intensive financial literacy courses to teachers.

“Two new laws (Republic Act No. (RA) 10679 and RA 10922) mandate us to teach financial literacy to students. But I think, if you want to teach financial literacy to students, you have to start with the teachers,” Briones concluded.

Source: DepEd Press Release


News released by Manila Bulletin On DepEd Provident Fund:


DepEd expands Provident Fund to assist teacher-borrowers


In line with its efforts to help teachers, the Department of Education (DepEd) is expanding the coverage of its Provident Fund, with revised guidelines in its implementation.

Education Secretary Leonor Briones said that many public school teachers and personnel are now suffering from unpaid loans with accumulated interests. “The damage of over-borrowing on the lives of teachers and their families has been going on for years and it can no longer continue,” she explained.

Among the solutions that DepEd is looking into is expanding the coverage of the Provident Fund which belongs to all employees of DepEd. “We want to add a lending facility wherein they can loan a limited amount but we will make sure that the interest will not be compounded and terms would be lower,” Briones said.

In support of this goal,  Briones issued DepEd Order 52, s. 2017 or the “Amendments to DepEd Order Nos. 12 s. 2004 and 36, s. 2007 (Revised Implementing Guidelines for the DepEd Provident Fund).”

In the amended version, it is stated that: “Qualified co-terminus employees who have been in the service with DepEd for at least two years, inclusive of services rendered as Contract of Service (COS) within the last five years, if any, may avail of the PF loan up to a maximum principal amount of Fifty Thousand Pesos (P50,000.00) only, payable in equal monthly amortizations from 12 up to 24 months, at the option of the borrower, subject to his/her capacity to pay.”

In the revised version the “borrower shall be required one co-maker with the following qualifications with permanent status of employment: (1) has been in the service with the Department for at least one year, inclusive of services rendered as COS within the last five years, if any; (2) has a monthly basic salary of greater than or equal to that of the former’s monthly basic salary; and (3) not a co-maker for at least three PF loans with outstanding balances.”

The Section X, Item 10 of DO 12, s. 2004 was also amended.

In the revised version, it was stated that: “All types of loans shall have a contractual interest rate of six percent (6%) per annum, computed using the diminishing/declining balance method, wherein the interest per installment period is calculated based on the outstanding balance of the PF loan at the beginning of each installment period.”

In the amended version the “total amount due, inclusive of principal and interest, will be payable in equal monthly amortizations. The borrower may opt for a repayment period from 12 up to 60 months, subject to his/her capacity to pay. In all cases, repayment of loans shall be through automatic payroll deduction. For guidance, refer to Illustrations 1 to 5, for terms of loan of 1 to 5 years, respectively, and the corresponding notes.”



Source: Manila Bulletin 

By Merlina Hernando-Malipot
Published November 4, 2017, 12:57 PM

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3 Thoughts to “Briones Answers Issues on Teachers’ Debts | DepEd Press Release

  1. Just let us get paid higher. No sane professional would stay in debt if he is able to meet his needs (and that of his loved ones who depend on him) with his adequate monthly wages.

  2. Yes, we understand the sentiments of our Secretary for our future BUT please do not do it without prior noticed to the concerned teachers that you will deduct abruptly from the net pay at the end of the month. Inform the teachers ahead so that teachers can prepare for a monthly budget. And please do not say anything that can degrade the dignity of our profession. You don”t need to tell the whole world about it. WE are professionals not an ordinary people living in the jungle. WE, the teachers teach LOVE to our students and HOPE you will learn to LOVE your teachers also.

    1. Dep-Ed in the 21st century tried to uplift learners based on “Mission ” and” Vision”. The Mission and Vision express its general idealistic point of view for which this would bring forth progress and the quality of learners with the K to 12 Curriculum.
      How about the teachers? what are the qualities of the 21st Century teachers too? How about salaries of these teachers?Does it compensate for what they believed is fair?
      It is true that until this time the demand for classroom supplies is high. But the supply is less of what is expected.
      Today’s teachers are financially incapacitated and will not survive for once a month salary. for the new teachers.
      How about for a teacher who is married with 3 or children in a family? a teacher who will receive a salary once a month and at the end of the month will have to look for subsistence from first to the third week and look for any lending institution every Saturday with the payslip and sometimes very far from the city spending money just to reach to a certain lending entity and when a teacher arrives she cannot avail the amount that is set to be for her priority needs .
      How can a teacher look for subsistence during school days if she needs a travel order or o be absent to fulfill the need of his /her family?
      Yes, school supplies meant to be the priority of a teacher even before since if there are evaluation inside the classroom
      this classroom must be equipped with the materials found in the lists and it is for the benefit of being recognized as the best classroom.
      The basic needs are necessary, but what if your classroom is empty? Are the materials for the children to be exposed or for display? Is it necessary for display in glass?
      The teacher tries to acquire /avail such necessary materials in her personal pocket and go to any lending entity for such a cause ” to please no the children but the demand.
      The teachers’ joy is the increase in standardized salary not minding of their debts just because in such a way they will be helped and their needs will be satisfied even in little amount.
      I for one worked for twenty – three years but I prioritized my classroom needs especially the technological families that serve as my innovation, not for classroom evaluation but for my learners’ to enjoy and love learning as well.
      I don’t mind if I may not be the best classroom either but I must always let my learners’ who are entrusted to me the experienced to love of learning in the first place for their future … that someday … they will be a good model to their family, their community and to their country. no matter what happens they will always be guided how to love themselves to make their dreams come true.

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