About 1,000 public school teachers and non-teaching personnel whose salaries have been heavily garnished because of debt are set to receive financial relief under a new partnership between the Department of Education (DepEd) and the Land Bank of the Philippines (LandBank).
The agreement, formalized on Thursday, establishes a loan assistance program that will allow qualified DepEd employees to refinance high-interest loans from private lenders through LandBank.
DepEd said the initiative is intended to help education workers regain control of their finances by replacing costly debt obligations with more manageable payment terms, restoring their ability to bring home part of their monthly pay.
Education Secretary Sonny Angara said the program is part of the Marcos administration’s commitment to protect the welfare of teachers, noting that financial hardship can affect their well-being and performance in the classroom.
“Hindi dapat nalulunod sa utang ang mga gurong araw-araw na nagsisilbi para maiangat ang kinabukasan ng ating mga kabataan. Kung matutulungan natin silang makabangon at makahinga muli financially, tungkulin nating gawin iyon,” Angara said.
To make the program more affordable, DepEd waived its 0.5-percent service fee on remittances. The waiver allowed LandBank to lower the annual interest rate for the loan assistance program from percent to 6.5 percent.
The new rate is significantly lower than the terms imposed by some unaccredited private lenders, whose charges can reach up to 3 percent per month.
DepEd said the program will initially cover around 1,000 garnished salary accounts, representing an estimated P500 million in debt.
Under the refinancing arrangement, personnel who had been receiving little or no take-home pay because of deductions are expected to again receive the mandated minimum net pay of P5,000.
LandBank President and CEO Ma. Lynette Ortiz said the initiative is part of the bank’s effort to strengthen financial inclusion among teachers and other education workers who have long been underserved by formal banking channels.
For many teachers, heavy salary deductions have made it difficult to meet household needs, prepare for emergencies, or recover from recurring debt.
DepEd said the program aims to give affected workers “financial breathing room” and help ease the stress caused by mounting obligations.
“Kapag mas panatag ang ating mga guro, mas makakapagpokus sila sa kanilang pinakamahalagang tungkulin—ang pagtuturo at paggabay sa ating mga mag-aaral,” Angara said.
DepEd and LandBank are expected to conduct orientation and implementation activities in the coming months to ensure that qualified beneficiaries are informed about the program and able to access the assistance.