DepEd on Salary Loans: Understanding the Problem, Limited by the Rules

The Department of Education (DepEd) has released an advisory addressing calls for a longer repayment period for teachers’ salary loans. Many teachers have been asking for a 10-year payment option to reduce monthly deductions and ease financial pressure.

DepEd acknowledged this reality, saying it “understands the request for a 10-year payment period for salary loans, as longer payment periods can help reduce monthly deductions and make repayments easier to manage.” For many teachers, that line reflects daily struggles with shrinking take-home pay.

However, the advisory makes it clear that DepEd cannot simply approve the request. Salary loans are regulated by the Bangko Sentral ng Pilipinas (BSP), and current rules only allow repayment periods of “up to 3 years, and in special cases, up to 5 years.” A 10-year option is not allowed under existing guidelines.

This means that even if the need is real, DepEd’s hands are tied by policy.

Still, the department says it is not closing the door entirely. DepEd stated that it “remains committed to working with partners to explore other allowable options that can help support the financial well-being of our teachers and personnel.”

For teachers, the advisory sends a mixed message: their situation is recognized, but meaningful relief remains limited by regulations beyond DepEd’s control.