The Department of Education (DepEd) has formally requested financial institutions, the Government Service Insurance System (GSIS), and the Bangko Sentral ng Pilipinas (BSP) to implement a moratorium on loan payments for DepEd personnel, citing the economic difficulties brought about by recent typhoons. The appeal, spearheaded by Secretary Sonny Angara, seeks immediate relief for educators and staff facing financial strain due to the widespread damage caused by the calamities.
In a series of letters addressed to various stakeholders, Secretary Angara outlined the rationale and scope of the proposed moratorium:
Relief for December 2024 Payments
DepEd has requested a suspension of loan payments for all its teaching and non-teaching personnel for December 2024. This measure aims to provide temporary financial relief during the holiday season, particularly in light of the heightened economic burdens caused by the disasters.Extended Moratorium for Affected Areas
For employees residing in typhoon-affected areas declared under a state of calamity, DepEd proposed an additional three-month extension of the moratorium, covering January to March 2025. Payments would resume in April 2025. This targeted assistance is designed to aid those grappling with extensive recovery efforts.Appeal to Financial Institutions and Regulatory Support
- To Financial Institutions: The moratorium is requested to include not only principal amounts but also accrued charges, costs, and interest to ensure comprehensive relief.
- To the GSIS: As the primary loan provider for government employees, the GSIS is urged to provide special consideration to DepEd employees, aligning its moratorium policies with the institution's social welfare mandate.
- To the BSP: DepEd has asked the central bank to classify loans subject to the moratorium as non-defaulting during the specified period. This classification would prevent financial institutions from penalizing borrowers or downgrading their credit ratings due to the temporary suspension of payments.
Typhoon Aftermath and Economic Challenges
Recent typhoons have left a trail of destruction across the Philippines, displacing thousands and causing significant damage to homes and livelihoods. DepEd personnel, many of whom reside in the hardest-hit areas, have faced challenges ranging from property damage to disrupted family incomes. The requested moratorium is seen as a critical lifeline for these educators as they strive to rebuild their lives.
Acknowledgment of Educators' Role
Secretary Angara emphasized the unwavering dedication of DepEd employees to ensuring quality education for Filipino youth. “Our personnel have consistently served the nation. I sincerely hope that, in times of need, the public and private sectors would find reason to extend this much-needed help,” he stated.
Next Steps
The DepEd's appeal is under consideration by the concerned institutions. Financial institutions and the GSIS are expected to issue their responses in the coming weeks, while the BSP’s decision on loan classification is awaited.
The proposed moratorium highlights the government’s commitment to supporting its workforce amid crises and underscores the importance of collaboration between public agencies and private sectors in times of national need.