MANILA, April 16, 2018 – In constantly promoting the welfare and improving the financial capability of its teaching and non-teaching personnel, the Department of Education (DepEd) today formalized its partnership with the Government Service Insurance System (GSIS) on the GSIS Financial Assistance Loan to DepEd Personnel (GFAL) during a ceremonial signing of the memorandum of agreement (MOA) at Malacañang.
Witnessed by no less than President Rodrigo Roa Duterte, Education Secretary Leonor Magtolis Briones and GSIS President and General Manager Jesus Clint Aranas signed the MOA on behalf of their respective agencies.
“This partnership is one way for DepEd to help hundreds of thousands of its teachers and personnel free themselves from the burden of loans and over-borrowing, while ensuring the preservation of their GSIS benefits and fulfilling DepEd’s legal mandate under the General Appropriations Act (GAA),” the Secretary reiterated.
GFAL is a financial assistance loan program extended by GSIS to eligible DepEd borrowers on a voluntary basis to help protect them from the risk of losing their hard-earned retirement or separation benefits.
Under GFAL, eligible DepEd borrowers’ existing loans with PLIs will be refinanced by the GSIS at a lower nominal interest rate of 6% per annum and a longer loan term of up to six years. Eligible DepEd borrowers who opt to avail of the GFAL will now be able to have reduced monthly loan amortizations. DepEd and GSIS have agreed to prioritize borrowers whose monthly payment for obligations exceed the P5,000 monthly NTHP to allow them to service their current obligation.
However, the Secretary emphasized that GFAL is voluntary and still gives DepEd borrowers the option to make their own restructuring arrangement with PLIs.