Around 1,000 public school teachers and non-teaching personnel drowning in salary deductions due to garnished accounts stand to regain financial stability following a new loan assistance agreement between the Department of Education and the Land Bank of the Philippines.

The partnership, formalized on 14 May, will allow LANDBANK to refinance the existing loan obligations of affected DepEd personnel who are currently tied to private lending institutions that charge significantly higher interest rates.

DepEd says the initiative aims to restore a more stable net take-home pay for heavily indebted education workers—many of whom have been receiving little to no salary due to mounting deductions.

Education Secretary Sonny Angara said the program supports the Marcos administration’s commitment to protecting teacher welfare, noting that financial strain has long affected the morale and productivity of educators.

“Hindi dapat nalulunod sa utang ang mga gurong araw-araw na nagsisilbi para maiangat ang kinabukasan ng ating mga kabataan,” Angara said.

“Kung matutulungan natin silang makabangon at makahinga muli financially, tungkulin nating gawin iyon.”

Under the agreement, DepEd also approved the waiver of a 0.5% service fee on remittances—allowing LANDBANK to reduce the interest rate for the refinancing program from 7% to 6.5% per annum.

This is substantially lower than the rates charged by unaccredited lenders where teachers may be paying up to 3% per month.

The partnership covers about ₱500 million in salary loan accounts. With the refinancing scheme, affected personnel may once again receive the mandated minimum ₱5,000 net take-home pay after months—or even years—of heavily depleted salaries.

“These are not add-ons, they're part of building a more complete financial relationship with teachers who have historically been underserved by the formal banking system,” LANDBANK President and CEO Ma. Lynette Ortiz said.

DepEd noted that many teachers rely on private lenders due to urgent family needs, classroom-related expenses, or emergencies—cycles that often lead to long-term financial distress.

By giving them “breathing room,” the agency hopes to improve educators’ well-being and keep their focus on teaching.

“Kapag mas panatag ang ating mga guro, mas makakapagpokus sila sa kanilang pinakamahalagang tungkulin—ang pagtuturo at paggabay sa ating mga mag-aaral,” Angara added.