GSIS, DepEd ink pact to boost teachers’ financial capability

President Duterte yesterday expressed hope that the signing of a memorandum of agreement (MOA) facilitating payments of loans of teachers would help government mentors settle their debts with private lenders.

The MOA was signed by Department of Education (DepEd) Secretary Leonor Briones and Government Service Insurance System (GSIS) president and general manager Jesus Clint Aranas. It also covers other DepEd personnel.

Witnessing the signing at Malacañang, Duterte lamented that teachers, like soldiers, mostly become victims of loan sharks, which is among the reasons they end up deep in debt.

“When I announced that the soldiers will get double pay during the campaign, many advanced their loans,” he said.

Aranas said the program reinforces the issuance of DepEd Order No. 38 issued on July 31, 2017, reiterating the President’s instruction to prioritize GSIS premium and loan payments.

A program called GSIS Financial Assistance Loan (GFAL) will be piloted for six months in Batangas, Bulacan, Dagupan, Naga, Cavite, Manila, Quezon City, Bohol, Ormoc, Koronadal, Butuan and Tagum, he said.

Active GSIS regular members may apply for the loan if they are permanent. Covered are those with paid premiums for the last three years, those who are not on leave of absence without pay, have an outstanding loan with DepEd-accredited private lending institutions (PLIs), have no due and demandable GSIS loan, and have no pending administrative or criminal case.

If a private lender has filed a case against members for nonpayment of obligations after GSIS loan payments have been prioritized, such members are still eligible to apply for the GFAL.

Qualified members may borrow up to P500,000, provided their take-home pay will not go lower than P5,000 after their monthly obligations have been deducted.

The loan is payable in monthly installments for six years at six percent interest rate a year computed in advance. Payments will be automatically deducted from the borrower’s salary.

To apply, members may submit, through their agency authorized officers (AAOs), a duly accomplished form attached to which is an AAO-certified true copy of their pay slips for the last three months, certified documents specifying loan details with PLIs such as borrower loan agreements and loan vouchers, and GSIS pro-forma statement of account duly accomplished by PLIs.