A group of teachers on Monday, Dec. 2, urged the Department of Education (DepEd) to “clarify” its proposed policies on loan moratoriums for its employees.

The Teachers’ Dignity Coalition (TDC), in a statement, said DepEd Secretary Sonny Angara should “strengthen safeguards and clarify policies” for the proposed loan payment moratorium for DepEd employees.

On Nov. 29, DepEd announced that Angara had appealed to private financial institutions to implement a moratorium on loan payments for teaching and non-teaching personnel to provide relief to those severely impacted by recent typhoons.

Angara specifically requested a three-month moratorium on loan payments for DepEd employees directly affected by the typhoons, ideally starting in January 2025, with payments resuming in April 2025.

The request is intended for bona fide DepEd personnel or residents of areas declared calamity zones by appropriate government agencies, such as the Office of the President, local government units, or the Office of Civil Defense, since September 2024.

Meanwhile, Angara also appealed for a December 2024 moratorium on loan payments for all DepEd personnel, with payments resuming in January 2025.

DepEd noted that the moratorium is expected to cover all charges, costs, and interest.

The TDC thanked Angara for “exploring innovative solutions to ease the financial burdens of teachers” and expressed hope that DepEd would adopt and implement a more teacher-focused moratorium policy.

Need for clarification

In a letter to Angara, the TDC commended the initiative for its potential to provide much-needed financial relief to teachers, particularly those affected by recent devastating typhoons.

“These calamities have left countless families struggling to recover, with financial strain becoming a significant burden for many of our colleagues,” said TDC National Chairperson Benjo Basas.

While supporting the measure, the group raised concerns based on past experiences during the pandemic, when vague policies on loan moratoriums resulted in unforeseen financial challenges for employees.

Basas highlighted complaints from teachers who incurred penalties from both public and private lending agencies when loan payments resumed.

Proposed measures

To address possible concerns, the TDC proposed several measures in the letter.

The group recommended establishing “clear guidelines” to ensure employees are not subjected to accrued interest or penalties during the moratorium period, as such financial burdens could undermine the intended relief and create additional challenges.

“To support this, we kindly suggest that DepEd forge enforceable agreements with lending institutions, incorporating provisions to safeguard the rights and welfare of employees,” Basas said in the letter, which was also furnished to DepEd undersecretaries for legal and finance matters.

The TDC also proposed that employees who prefer to continue their payments through the Automatic Payroll Deduction System (APDS) during the moratorium period should be “allowed to do so, respecting their individual financial circumstances and ensuring equitable treatment for all.”

Basas noted that these concerns were directly voiced by teachers in the field and gathered by the group through feedback and consultations.

“We believe that proactively addressing these concerns will restore confidence in the program and ensure its successful implementation,” Basas said.