IN a major move aimed at easing the financial burden on public school teachers and staff, Department of Education (DepEd) Secretary Sonny Angara has approved extending the maximum repayment period for salary loans under the Automatic Payroll Deduction System (APDS) from five to seven years.
Issued through DepEd Order No. 020, series of 2026, the updated policy brings the agency’s payroll guidelines in line with Bangko Sentral ng Pilipinas (BSP) Circular No. 1239.
The adjustment follows Angara’s formal request to the central bank in January, responding to widespread calls from educators for flexible repayment options to help manage household expenses.
This measure marks the second expansion in recent years, building on an earlier policy shift that increased loan terms from three years to five.
“Patuloy nating hinahanapan ng mga konkretong paraan kung paano mas gagaan ang pang-araw-araw na pamumuhay ng ating mga guro at kawani,” Secretary Angara stated, emphasizing that the initiative aligns with President Ferdinand Marcos Jr.’s directive to prioritize educators’ welfare.
“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,” Angara added.
Under the revised framework, eligible personnel can secure loan terms up to seven years, and existing borrowers can restructure current obligations to benefit from lower monthly payments. However, DepEd clarified that extension approvals are not automatic and remain subject to credit evaluation by accredited lenders.
To safeguard personnel from over-indebtedness, the policy integrates mandatory financial literacy and loan education programs, which accredited institutions must conduct before releasing funds.
DepEd emphasized that the objective is to promote responsible borrowing rather than encourage debt accumulation.
Before releasing the order, DepEd held consultations with APDS-accredited banks and private lenders to establish operational safeguards.
The department reiterated that it only facilitates payroll deductions under the APDS framework and plays no role in evaluating credit or approving loan applications.
Personnel are urged to borrow strictly from government institutions like Landbank or official APDS-accredited lenders, avoiding unauthorized loan sharks.
