DepEd, GSIS ink deal on loan payments for teachers

By Arjay L. Balinbin
PRESIDENT Rodrigo R. Duterte on Monday, April 16, witnessed the signing of a Memorandum of Agreement (MOA) between the Department of Education (DepEd) and the Government Service Insurance System (GSIS) that will facilitate the payment of loans of teachers and other DepEd personnel from private lenders.
In a statement, the GSIS said this will be done “through its loan facility.”
For her part, DepEd Secretary Leonor M. Briones said: “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 over-borrowing, while ensuring the preservation of the GSIS benefits and fulfilling DepEd’s legal mandate under the General Appropriations Act (GAA).”
“We don’t want DepEd employees to sink deep into debt, so we have proposed a better way for them to manage their finances. The borrowers will pay back the loan to GSIS at easy and affordable terms,” GSIS President and General Manager Jesus Clint O. Aranas said.
The GSIS Financial Assistance Loan to DepEd Personnel (GFAL), according to the GSIS, “will be piloted for six months in 12 areas across the country, including Batangas, Bulacan, Naga, Cavite, Manila, Quezon City, Bohol, Ormoc, Koronadal, Butuan, and Tagum.”
“Active GSIS regular members may apply for the loan if they are permanent; with paid premiums for the last three years; are not on leave of absence without pay; have an outstanding loan with DepEd-accredited PLIs; have no due and demandable GSIS loan; and have no pending administrative or criminal cases.”
Also according the GSIS, qualified members may borrow up to P500,000, provided their take-home pay will not go lower than P5,000.