While welcoming the Department of Education’s (DepEd) efforts to explore more flexible loan arrangements for public school teachers, the Alliance of Concerned Teachers (ACT) Philippines on Thursday, February 5, warned that extending loan terms will only worsen educators’ growing debt burden if salaries remain inadequate.

ACT issued the statement following DepEd’s January 30 letter to the Bangko Sentral ng Pilipinas (BSP), which sought guidance on developing longer and more flexible salary-based loan structures for teachers and education workers facing financial difficulties.

ACT Chairperson Ruby Bernardo said that while the move shows government recognition of teachers’ financial distress, it fails to address the root cause of the problem—low wages.

“While we recognize DepEd’s effort to respond to teachers’ financial difficulties, more loans—even with longer terms—are not the solution,” Bernardo said.

She stressed that when loans are merely extended, the problem just goes in circles. “Baon pa rin sa utang ang mga guro dahil sa kapos na sweldo at kakarampot na benepisyo (Teachers remain buried in debt because of inadequate salaries and meager benefits),” Bernardo said.

“Napipilitang mangutang nang paulit-ulit ang mga guro para makaagapay sa araw-araw na mga gastusin at makabayad sa dati nilang utang (They are forced to borrow repeatedly just to cope with daily expenses and pay off previous debts),” she added.

ACT noted that the heavy reliance of teachers on salary-based loans reflects a deeper structural issue in the education sector: compensation levels that fall far below what is considered livable.

Bernardo reiterated the group’s call for a P50,000 starting salary for public school teachers, which ACT believes would allow educators to support their families without constantly resorting to borrowing.

“Ang tunay na sagot ay makabuluhang dagdag-sweldo (The real solution is a substantial salary increase),” she said.

Bernardo emphasized that teachers need a P50,000 starting salary to support their families and stop depending on loans just to survive. “Hangga’t kapos ang sahod, kahit anong financial ‘flexibility’ ang ialok, mauuwi lang ito sa paulit-ulit na pagkakautang (As long as wages remain insufficient, any form of financial ‘flexibility’ offered will only lead to repeated indebtedness),” she added.

ACT also pointed out that teachers are not borrowing for non-essential spending but to cover basic needs such as food, rent, utilities, healthcare, children’s education, and even school-related expenses.

ACT cautioned that focusing on loan restructuring risks turning debt into a permanent condition for public school teachers.

“Hindi dapat utang ang inaasahang sasalo sa kakapusan ng sahod (Debt should not be the safety net for low wages),” she said.

“Loans are temporary relief at best, but the long-term, just, and sustainable solution is a substantial salary increase to uplift the living conditions of teachers and education workers to decent levels, as guaranteed by the constitutional right of every worker,” she added.

ACT renewed its appeal to the Marcos administration and Congress to prioritize significant salary increases for teachers and education workers.

The group also urged lawmakers to certify wage hike bills as urgent and implement broader reforms that would uplift the living and working conditions of educators, in line with workers’ constitutional right to decent compensation.