THE DEPARTMENT of Education (DepEd) has partnered with the Land Bank of the Philippines to help ease the financial burden of education personnel affected by heavy loan deductions.

Under the agreement, LandBank will refinance existing loans of DepEd employees who are currently tied to private lenders, offering them a more manageable repayment scheme and helping restore their take-home pay.

Around 1,000 public school teachers and non-teaching staff struggling with garnished salaries are expected to benefit from the initiative, which aims to provide immediate financial relief and long-term stability.

The program is designed to help employees regain a more reasonable net pay while reducing the pressure caused by mounting debt obligations and salary deductions.

Education Secretary Sonny Angara said the initiative reflects the government’s continued commitment to safeguarding the welfare of teachers, noting that financial stress directly affects their well-being and performance in schools.

“Hindi dapat nalulunod sa utang ang mga gurong araw-araw na nagsisilbi para maiangat ang kinabukasan ng ating mga kabataan. Kung matutulungan natin silang makabangon at makahinga muli financially, tungkulin nating gawin iyon,” Angara said.

As part of the agreement, DepEd has waived the 0.5 percent service fee on remittances, allowing LandBank to reduce interest rates under the loan assistance program from 7 percent to 6.5 percent per annum.

The partnership covers approximately 1,000 garnished salary loan accounts, with a total estimated value of around ₱500 million. Under the arrangement, affected personnel may once again receive at least a ₱5,000 net take-home pay, after previously experiencing little to no salary due to heavy deductions and garnishment.

LandBank President and CEO Ma. Lynette Ortiz said the initiative is part of building a stronger financial support system for teachers who have long been underserved by the formal banking sector.

“These are not add-ons, but part of building a more complete financial relationship with teachers who have been historically underserved by the formal banking system,” Ortiz said.