The Department of Education and Land Bank of the Philippines have launched a new loan refinancing program for public school teachers and personnel struggling with debt.
The initiative aims to help around 1,000 DepEd employees who experience heavy salary deductions because of existing loans from private lending institutions. Many affected teachers receive little or no take-home pay after monthly deductions.
Under the partnership, LandBank will refinance qualified salary loans using a lower annual interest rate. The program seeks to give teachers a more manageable payment scheme and help them recover financially.
Lower Interest Rates for Teachers
Education Secretary Sonny Angara said the program supports teacher welfare and financial stability.
“Teachers who dedicate their lives to educating the youth should not remain trapped in debt,” Angara said. “Helping them recover financially is part of our responsibility.”
DepEd also removed the 0.5 percent remittance service fee for loan payments. Because of this adjustment, LandBank lowered the refinancing interest rate from 7 percent to 6.5 percent per year.
The new rate is much lower than those offered by some private lenders. In some cases, private lending institutions charge interest rates of up to 3 percent per month.
Officials believe the lower interest rate will reduce financial pressure on teachers and help them regain control of their finances.
Program Covers ₱500 Million in Salary Loans
The refinancing program currently covers around ₱500 million worth of salary loan accounts.
Through the initiative, qualified personnel may once again receive the government-required minimum net take-home pay of ₱5,000.
Ma. Lynette Ortiz said the program forms part of a broader effort to improve financial services for teachers and government workers.
She explained that many educators remain underserved by formal banking institutions and often rely on high-interest lenders during emergencies.
Financial Relief for Public School Teachers
DepEd acknowledged that many teachers borrow money to support family needs, medical emergencies, and even classroom expenses. Many educators spend personal funds on teaching materials and school-related requirements.
The agency hopes the refinancing program will provide teachers with financial breathing room. Officials also believe that reduced financial stress can improve teacher well-being and classroom performance.
“When our teachers have peace of mind financially, they can focus more on teaching and guiding learners,” Angara added.
DepEd and LandBank will begin nationwide orientations and implementation activities in the coming months to prepare for the full rollout of the program.
