DepEd, GSIS to improve financial standing of indebted teaching, non-teaching personnel

In constantly promoting the welfare and improving the financial capability of its teaching and non-teaching personnel, the Department of Education (DepEd) recently formalized its partnership with the Government Service Insurance System (GSIS) on the GSIS Financial Assistance Loan to DepEd Personnel (GFAL).

Witnessed by no less than President Rodrigo Roa Duterte, Education Secretary Leonor Magtolis Briones and GSIS President and General Manager Jesus Clint Aranas signed the memorandum of agreement on behalf of their respective agencies.

“This partnership is one way for DepEd to help hundreds of thousands of its teachers and personnel free themselves from the burden of loans and overborrowing, while ensuring the preservation of their GSIS benefits and fulfilling DepEd’s legal mandate under the General Appropriations Act (GAA),” the Secretary reiterated.

GFAL is a financial assistance loan program extended by GSIS to eligible DepEd borrowers on a voluntary basis to help protect them from the risk of losing their hard-earned retirement or separation benefits.

Under GFAL, eligible DepEd borrowers’ existing loans with PLIs will be refinanced by the GSIS at a lower nominal interest rate of 6% per annum and a longer loan term of up to six years. Eligible DepEd borrowers who opt to avail of the GFAL will now be able to have reduced monthly loan amortizations. DepEd and GSIS have agreed to prioritize borrowers whose monthly payment for obligations exceed the P5,000 monthly NTHP to allow them to service their current obligation.

However, the Secretary emphasized that GFAL is voluntary and still gives DepEd borrowers the option to make their own restructuring arrangement with PLIs.

The MOA supports the DepEd Order No. 5, series 2018, which strictly implements the P5,000 minimum monthly NTHP of DepEd teachers and personnel.