- GSIS and DepEd signed an agreement to improve teachers’ financial capability
- GSIS seeks to refinance teachers and DepEd personnel’s outstanding loans with much lower interest rates from accredited lending institutions
- President Rodrigo Duterte said he was elated because the agreement would help ease the burden of teachers
The Government Service Insurance System (GSIS) and the Department of Education (DepEd) signed an agreement on Monday to improve the financial capability of teachers and DepEd personnel through a loan facility from GSIS which will facilitate the payment of their loans from private lenders.
The memorandum of agreement (MOA), signed by Education Secretary Leonor Briones and GSIS President and General Manager Jesus Clint Aranas at the Malacañang Palace, seeks to refinance outstanding loans of DepEd personnel from accredited lending institutions with much lower interest rates.
Moreover, it aims to improve teacher’s financial capability and ensure the preservation of their GSIS benefits.
The MOA further states, “DepEd shall prioritize the management of GSIS loans over and above 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) until those loans are fully paid.”
To apply for the loan, active GSIS regular members must have paid premium plans for the last three years, not on leave of absence without pay, maintaining an outstanding loan with DepEd-accredited PLIs, having due and demandable GSIS loan and the borrower has no pending administrative or criminal case.
Members with a pending case from a private lender because of nonpayment of obligations, after GSIS loan payments have been prioritized by DO No. 38’s virtue, is still eligible to apply.
As long as the members’ take-home pay does not fall below Php5,000 of the deduction of their monthly obligation, they are qualified to borrow up to Php500-thousand which is payable at a six-percent interest rate for a six-year-installment.
President Rodrigo Duterte, who was also present in the signing of agreement according to Manila Bulletin, said he was elated because the agreement would help ease the burden of teachers.