FAQs on DepEd Loan Payments

Here are what the personnel of the Department of Education (DepEd) should expect regarding their loan payments deped.gov.ph

DepEd Philippines

Education Programs Delivery Unit

FAQs | Internal Guidelines on the Implementation of Section 4(uu) of RA No. 11494 (1/12)

Sixty (60)-Day Grace Period What is the 60-day grace period under the BARO Act? It is a directive under the RA No. 11494 or Bayanihan to Recover as One (BARO) Act mandating all lending institutions to allow the suspension of payment of loan amortizations by the borrowers for a period of 60 days, from the date when the law was approved until December 31, 2020.

Will the loan terms be extended?

The loan terms will automatically be extended by two (2) months in the Department's Automatic Payroll Deduction System (APDS) upon the implementation of the said 60-day grace period.

However, not all Private Lending Institutions (PLIs) or Government Financial Institutions (GFIs) will extend loan.

FAQs | Internal Guidelines on the Implementation of Section 4(uu) of RA No. 11494 (2/12)

Sixty (60)-Day Grace Period When will this take eect?

The Department will not deduct loan amortizations from the salaries of DepEd borrowers in favor of PLIs and GFIs accredited under the APDS for the following months:

Lending Institutions

Eectivity of the 60-day Grace Period

GSIS

November - December 2020

Pag-IBIG Fund

October - November 2020

Land Bank of the Philippines

October - November 2020

DepEd Provident Fund

October - November 2020

PLIs under the APDS

October - November 2020

FAQs | Internal Guidelines on the Implementation of Section 4(uu) of RA No. 11494 (3/12)

Accrued Interest Will the borrowers be charged of the accrued interest due to the grace period?

The BARO Act does not prohibit lending or ďŹ nancing institutions from charging interests on the (outstanding) principal from September 30, 2020 to November 30, 2020.

However, the charging interest on interest, penalties, and other fees is prohibited by the law.

FAQs | Internal Guidelines on the Implementation of Section 4(uu) of RA No. 11494 (4/12)

Accrued Interest Will all PLIs and GFIs enrolled under the APDS charge the accrued interest?

The Department of Education requested the PLIs and GFIs to waive the accrued interest for the months the 60-day grace period is in effect.

Out of 174 PLIs and GFIs enrolled under the APDS, 101 of them (GSIS and DepEd Provident Fund included) agreed to waive the accrued interest.

For a list of PLIs and GFIS who will waive the accrued interest, please see Annex A..

FAQs | Internal Guidelines on the Implementation of Section 4(uu) of RA No. 11494 (5/112)

Accrued Interest Particulars PLIs and Government Financial Institutions (GFIs) which will NOT impose any additional charges

No. of Entities

Includes GSIS and DepEd Provident Fund

101

This means that additional 2 months shall be extended in the payroll, after the end of the original loan term, and no further charges or fees on principal amount of loan shall be charged to borrowers Includes Land Bank of the Philippines and Pag-IBIG Fund

PLIs and GFIs which will COLLECT the Accrued Interests for the 60-day Grace Period

30

PLIs and GFIs with no response to the request for the Waiver of Collection for Accred Interest

39

PLIs with no loans granted

4

TOTAL

174

Data as of October 20, 2020

Remarks

This means that interest on Outstanding Principal Loan Balance as of September 30, 2020 until November 30,3030 shall be charged be these lending institutions with the implementation of the 60-day grace period

FAQs | Internal Guidelines on the Implementation of Section 4(uu) of RA No. 11494 (6/12)

Accrued Interest How is the accrued interest charged?

60-DAY GRACE PERIOD APPLICATION PER BARO ACT EXAMPLE*: 10,000 LOAN, PAYABLE IN 10 MONTHS

PRINCIPAL

INTEREST

LOAN AMORTIZATION PER MONTH

Php 1,000

Php 100

Php 1,100

2 October

3

4

5

6

7

8

November

9

10

Php 1,100

Php 1,100

Not deducted from the salary of DepEd Employee

Php 2,200

Borrower needs to pay back Php 2,200 to the GFI or PLI on or before December 31, 2020.

Otherwise, there will be an accrual of 100 x 2 interest that will be charged to the borrower

60-day grace period

*illustrative samples only for easier explanation and does not reflect actual figures/amount

FAQs | Internal Guidelines on the Implementation of Section 4(uu) of RA No. 11494 (7/12) 60-DAY GRACE PERIOD

LOAN TERM EXTENSION

AND

EXAMPLE*: 10,000 LOAN, PAYABLE IN 10 MONTHS

PRINCIPAL

INTEREST

LOAN AMORTIZATION PER MONTH

Php 1,000

Php 100

Php 1,100

2 October

3

4

5

6

7

8

November Php 2,200

9

10

Php 1,100

Php 1,100

Borrower need NOT to pay back Php 2,200 to the GFI or PLI on or before December 31, 2020 because the loan structure of the borrower will be adjusted with additional 2 months (months 11 & 12) BUT there will be accrual or additional charge to the borrower (100 x 2) to be paid over-the-counter on or before Dec 31, 2020 or as may be agreed upon with PLI/GFI

Php 200

NO ACCRUED INTEREST, just 60-day grace period and loan term extension

*illustrative samples only for easier explanation and does not reflect actual figures/amount

Not deducted from the salary of DepEd Employee Accrued interest to be paid on or before Dec 31, 2020

11

12

Php 1,100 Php 1,100

FAQs | Internal Guidelines on the Implementation of Section 4(uu) of RA No. 11494 (8/12) DEPED NEGOTIATION WITH 89 GFIS/PLIS = 60-DAY GRACE PERIOD

LOAN TERM EXTENSION, NO ACCRUALS

AND

EXAMPLE*: 10,000 LOAN, PAYABLE IN 10 MONTHS

PRINCIPAL

INTEREST

LOAN AMORTIZATION PER MONTH

Php 1,000

Php 100

Php 1,100

2 October

3

4

5

6

7

8

November Php 2,200

9

10

Php 1,100

Php 1,100

Borrower need NOT to pay back Php 2,200 to the GFI or PLI on or before December 31, 2020 because the loan structure of the borrower will be adjusted with additional 2 months (months 11 & 12) AND there is NO accrual or additional charge to the borrower

Php 200

With 60-day grace period & loan term extension, WITHOUT accrued interest

*illustrative samples only for easier explanation and does not reflect actual figures/amount

Not deducted from the salary of DepEd Employee Accrued interest to be paid on or before Dec 31, 2020

11

12

Php 1,100 Php 1,100

FAQs | Internal Guidelines on the Implementation of Section 4(uu) of RA No. 11494 (9/12)

PLIS AND GFIS WHICH WILL NOT IMPOSE ANY ADDITIONAL CHARGES AS OF OCTOBER 20, 2020

Annex A 1. Government Service Insurance System 2. DepEd Provident Fund 3. Abra Public School Teachers Cooperative 4. Agribusiness Rural Bank, Inc. 5. Agusan Del Norte Teachers, Retirees, Employees And Community Cooperative 6. Angeles City Public School Teachers and Employees Credit Cooperative 7. ASCCOM Multi-Purpose Cooperative 8. Baguio City School Teachers and Employees Multi-Purpose Cooperative 9. Banco Alabang, Inc. (A Rural Bank) 10. Banco de Mindoro, Inc. (A Rural Bank) 11. Banco Maximo, Inc. (A Rural Bank) 12. Bataan Public School Teachers and Employees Association, Inc. 13. Bataan School of Fisheries Faculty and Staff Multi-Purpose Cooperative 14. BayBank Inc. (A Rural Bank) 15. Bayugan West District Teachers Employees and Community Cooperative 16. Beneficial Life Insurance Company, Inc. 17. Bohol Public School Teachers and Employees Multi-Purpose Cooperative* 18. Camarines Sur Elementary and Secondary Teachers and Employees Association, Inc. (CASESTEAI) 19. Camarines Sur Teachers and Employees Multi-Purpose Cooperative (CASTEMUPCO) 20. Cavite United Rural Bank Corporation 21. Century Rural Bank, Inc. 22. Clarin National High School Family Multi-Purpose Cooperative 23. Country Bankers Life Insurance Corporation 24. Davao Educators and Personnel Credit Cooperative 25. DECS South Cotabato Multi-purpose Cooperative

FAQs | Internal Guidelines on the Implementation of Section 4(uu) of RA No. 11494 (10/12)

PLIS AND GFIS WHICH WILL NOT IMPOSE ANY ADDITIONAL CHARGES AS OF OCTOBER 20, 2020

Annex A 26. Department of Education Cooperative (DepEd Coop) 27. DepEd MIMAROPA Multi-Purpose Cooperative 28. Digos City National High School Teachers and Employees Multi-Purpose Cooperative 29. Division Teachers And Non-Teaching Multi-Purpose Cooperative 30. Echague Public School Teachers Multi-Purpose Cooperative 31. Enrile Teachers Integrated Development Cooperative 32. Etiqa Life and General Assurance Philippines, Inc. 33. First United Finance and Leasing Corporation 34. Fortune Life Insurance Company, Inc. 35. Frontier Rural Bank, Inc. 36. General Tinio Faculty and Personnel Association Credit Cooperative 37. Golden R&L Finance Corporation 38. Great Educational Financing Corporation (Financing Company) 39. Home Technologist Credit Cooperative (HOMETECC)* 40. Initao National Comprehensive High School Teachers and Employees Cooperative (INCHSTECO) 41. Innovative Bank, Inc. (A Rural Bank) 42. Janiuay Rural Bank, Inc. 43. Kabankalan-Ilog Teachers and Employees Multi-Purpose Cooperative (KITEMPCO) 44. Kaguruan Multi-Purpose Cooperative 45. Katipunan Bank, Inc. "A Rural Bank" 46. Kilusang Nueve (K-9) Multi-Purpose Cooperative * 47. La Castellana I Personnel Multi-Purpose Cooperative 48. Lagawe Multi-Purpose Development Cooperative 49. Legazpi City Division Credit Cooperative 50. Libacao Development Cooperative

FAQs | Internal Guidelines on the Implementation of Section 4(uu) of RA No. 11494 (11/12)

PLIS AND GFIS WHICH WILL NOT IMPOSE ANY ADDITIONAL CHARGES AS OF OCTOBER 20, 2020

Annex A 51. Libungan National Employees Multi-Purpose Cooperative 52. Llanera Teachers Association Multi-Purpose Cooperative 53. Luzon Development Bank 54. Mactan Rural Bank (Lapu-Lapu City), Inc. 55. Madalag Teachers' Multi-Purpose Cooperative 56. Manila Teachers' Mutual Aid System, Inc. (MTMASI) 57. Manila Teachers' Savings and Loan Association, Inc. 58. Marayo Bank, Inc. (A Rural Bank) 59. Marcelo H. Del Pilar National High School Teachers Multi-Purpose Cooperative* 60. Masisit-Dacal Livelihood Cooperative (MASCOOP) 61. Mindanao Educators Mutual Benefit Association, Inc. 62. Millennium Educators and Retirees Association, Inc. ** 63. Mt. Province Teachers' Mutual Aid System 64. Munoz National High School Multi-Purpose Cooperative* 65. Negros Teachers' Multi-Purpose Cooperative 66. Novo Ecijano Teachers’ Mutual Benefit Association, Inc. (NETMBAI) 67. Olongapo City National High School Employees Multi-Purpose Cooperative, Inc.* 68. Pampanga High School Multi-Purpose Cooperative 69. Paramount Life & General Insurance Corporation 70. Philippine Business Bank, Inc., A Savings Bank 71. Philippine Life Financial Assurance Corporation 72. Philippine Public School Teachers Association (PPSTA) 73. Philippines International Life Insurance Company, Inc. 74. Quezon Public School Teachers and Employees Credit Cooperative (QPSTECC) 75. Racso's Bank, Inc. (A Rural Bank)

FAQs | Internal Guidelines on the Implementation of Section 4(uu) of RA No. 11494 (12/12)

PLIS AND GFIS WHICH WILL NOT IMPOSE ANY ADDITIONAL CHARGES AS OF OCTOBER 20, 2020

Annex A 76. Romblon National High School Teachers & Employees Multi-Purpose Cooperative* 77. Rubetan Finance Corporation (Financing Company) 78. Rural Bank of Angeles, Inc. 79. Rural Bank of Bambang (Nueva Vizcaya), Inc. 80. Rural Bank of Central Pangasinan, Inc. 81. Rural Bank of Ibajay, Inc. 82. Rural Bank of Irosin (Sorsogon), Inc. 83. Rural Bank of Malolos, Inc. 84. Rural Bank of Manukan (Zamboanga del Norte), Inc. 85. Rural Bank of Siocon (Zamboanga del Norte), Inc. 86. Santiago-San Isidro Teachers Multi-Purpose Cooperative 87. Sta. Ana Multi-Purpose Cooperative (SAMULCO) 88. Sta. Elena High School Teachers and Employees Multi-Purpose Cooperative 89. Tabaco National High School-Alay Kapwa Multi-Purpose Cooperative (TNHS-AKMPC)* 90. Tacurong Teachers and Employees Multi-Purpose Cooperative 91. Tanay District Teachers Credit Cooperative 92. Teachers Association of Pangasinan Multi-Purpose Cooperative 93. Teachers Association of Pangasinan, Dagupan City and San Carlos City, Inc. 94. Teachers Association of Pangasinan, Inc. 95. Unistar Credit And Finance Corporation 96. United Coconut Planters Life Assurance Corporation (COCOLIFE) 97. United Teachers Multi-Purpose Cooperative 98. Yields Financial Corporation 99. Zamboanga City Rural Bank, Inc. 100. Zamboanga Del Sur-Sibugay-Pagadian City Teachers' Association (ZSSPCTA), Inc. 101. Zamboanga Peninsula Teachers and Community Multi-Purpose Cooperative (ZAMPTECO) *- Cooperatives accredited by DepEd Regional Offices **- Inadvertenly not included in the Attachment 1-A of Memorandum No. 2020-0552 PLIs and GFIs not included in the list either a) will impose accrued interest; b) have not responded to our request; or c) have no loans granted.