Clarifications on the DepEd Loan Moratorium

The Department of Education (DepEd) has issued a detailed memorandum on the implementation of the loan moratorium for teaching and non-teaching personnel. This initiative was requested by Senator Sonny Angara to provide financial relief to personnel affected by recent calamities. Below are the key clarifications and the comprehensive coverage of the moratorium based on the memorandum issued on December 19, 2024.

Clarifications on the DepEd Loan Moratorium

Moratorium Coverage

Scope of the Moratorium

DepEd borrowers shall be provided with:

1. One (1) Month Moratorium: This applies to all DepEd personnel across the country, regardless of location or circumstances.
2. Three (3) Month Moratorium: This is exclusively for DepEd personnel residing or working within areas declared as calamity zones by appropriate government agencies. Only those in calamity-affected areas are eligible for this extended moratorium.

Implementation Timeline

1. Regular payroll processing will resume for the month of December 2024.
2. The moratorium will be implemented starting January 2025 and will last up to April 2025, depending on the chosen duration by the financial institution (FI).

Loan Obligations Covered

• Exclusions: Salary deductions for insurance premiums, membership fees, and similar obligations will not be covered by the moratorium.
• The moratorium will include loan principal, interest, penalties, and other similar accruals and charges during the specified periods.

Financial Institutions Included The loan moratorium will apply to financial institutions (FIs) listed in the annexes of the memorandum:

• Annex C: List of FIs granting a three-month moratorium.
• Annex D: List of FIs granting a one-month moratorium.
• Annex E: Members of the Chamber of Thrift Banks (CTB) and Rural Bankers Association of the Philippines (RBAP) granting moratoriums through refunds but with interest.
• Annex F: Members of the Salary Deduction Assurance Association, Inc. granting moratoriums through refunds and waiving interest.
• Annex B: List of FIs granting a four-month moratorium.

Affected Areas

The three-month moratorium will be limited to personnel in calamity-affected areas specified in Annex A. These areas have been identified based on government declarations and are eligible for extended relief under this program. It is important to note that the loan moratorium shall only be limited to the affected areas specified in Annex A, and not all DepEd personnel can avail of this provision, contradicting the broad scope mentioned on the first page.

Key Guidelines for Implementation
Payroll Adjustments

The DepEd Central Office, through the Information and Communications Technology System – Solutions Development Division (ICTS-SDD), will develop necessary adjustments in the payroll program for the moratorium period.

Specific measures include:

• Marking loan amortizations under "Undeducted Obligations" in pay slips.
• Extending loan amortization termination dates to correspond with the moratorium period.
• Strictly adhering to the "First-In-First-Served" queuing system.
• Ensuring no "Undeducted Obligations" move to "Deducted Obligations" during the moratorium.

Application and Verification for New Loans

• DepEd personnel are allowed to apply for new loans, subject to TCAA limitations.
• Verifiers will ensure loan applications comply with existing rules and guidelines.

Interests and Penalties

• Borrowers will not incur additional charges, penalties, surcharges, or accruals on outstanding loan balances during the moratorium.

Voluntary Payments (Over-the-Counter)

• Borrowers who wish to continue paying their loans can do so through their respective financial institutions’ over-the-counter payment systems.

Further Clarifications

Purpose of the Moratorium

• The initiative aims to pause loan payments and adjust loan terms by the corresponding moratorium months.
• Lump-sum repayment is not required after the moratorium period.
• No additional charges, penalties, or accruals will be imposed.

Calculation of Net Take-Home Pay

• Pay slips with undeducted obligations will be used to verify if borrowers can still obtain loans.

Support from Financial Institutions

• Financial institutions and associations have provided separate mechanisms to ensure effective implementation of the moratorium.

This memorandum serves as a critical financial relief measure for DepEd personnel, ensuring flexibility and easing burdens in the wake of recent calamities. For additional information or specific queries, personnel are encouraged to refer to the annexes or coordinate with their respective financial institutions.

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