DepEd extends teachers' salary loan repayment to 7 years

Department of Education (DepEd) Secretary Sonny Angara has approved extending the maximum repayment period for salary loans of DepEd personnel from five years to seven years, a move aimed at easing the financial burden on teachers and school employees.

In a statement on Friday, DepEd said the policy, contained in DepEd Order No. 020, series of 2026, aligns the department’s guidelines with Bangko Sentral ng Pilipinas (BSP) Circular No. 1239.

The department said the change followed Angara’s request to the BSP in January to allow more flexible loan structures in response to calls from teachers and school personnel for financial relief.

According to DepEd, the updated policy builds on an earlier reform that had already extended the maximum loan term from three years to five years.

Angara said the latest measure is intended to reduce the monthly loan payments of teachers and personnel.

“Patuloy nating hinahanapan ng mga konkretong paraan kung paano mas gagaan ang pang-araw-araw na pamumuhay ng ating mga guro at kawani,” Angara said.

(We continue to look for concrete ways to ease the daily lives of our teachers and personnel.)

“Alinsunod sa bilin at direktiba ni Pangulong Bongbong Marcos na alagaan ang kapakanan ng ating mga educator, itong pagpapahaba ng loan term—mula sa dating tatlo hanggang limang taon, at ngayon ay pitong taon na—ay magbibigay sa kanila ng mas mababang buwanang hulog at mas malaking take-home pay para sa pamilya,” he added.

(In line with President Bongbong Marcos’ directive to protect the welfare of our educators, extending the loan term—from three years, then five years, and now seven years—will give them lower monthly payments and higher take-home pay for their families.)

Under the new guidelines, qualified borrowers may repay loans for up to seven years, while existing loans may also be restructured to avail of the longer repayment period.

DepEd clarified, however, that the extension is not automatic and remains subject to the credit evaluation and approval of APDS-accredited banks and private lending institutions.

The department said the policy is meant to provide more flexible repayment options while promoting responsible borrowing, and not to encourage employees to take on additional debt.

DepEd also said banks and lending institutions accredited under the Automatic Payroll Deduction System (APDS) will now be required to conduct mandatory financial literacy and loan education sessions before processing or releasing loans.

The department likewise urged teachers and personnel to borrow only from government financial institutions, government banks such as LandBank, and APDS-accredited banks and private lenders, while avoiding loan sharks and unauthorized lenders. —LDF, GMA News