Dominguez wants Landbank, GSIS to help DepEd teachers pay their loans
Public school teachers should be given the chance to use government banks in paying off their debts.
Finance Secretary Carlos Dominguez III wants the Land Bank of the Philippines and the Government Service Insurance System (GSIS) to offer a loan refinancing program for teachers under the Department of Education, as a way to relieve some burden from the state employees.
In a statement, Dominguez asked the two financial institutions to offer an easy-to-pay and low-interest refinancing program for teachers with unsettled debts from private banks as a win-win solution.
“The teachers pay less, [the government financial institutions (GFIs)] earn more than leaving (their money) in government securities, and the funds that teachers earn anyway goes back to them as their retirement fund,” Dominguez said.
The Department of Finance observed a near-40% default rate from teachers for their GSIS loans, which the measure seeks to resolve.