DepEd Extends Maximum APDS Loan Repayment Period to 7 Years for Teaching and Non-Teaching Personnel

Good news for Department of Education (DepEd) teaching and non-teaching personnel as the maximum repayment period for loans under the Automatic Payroll Deduction System (APDS) Program has been extended to seven years.

The new policy is contained in DepEd Order No. 20, s. 2026, titled “Revised Loan Terms of Payment Under the Department of Education’s Automatic Payroll Deduction System Program.”

Under the revised policy, qualified DepEd personnel may now avail themselves of loan repayment terms of up to seven years, an increase from the previous maximum of five years.

The development is expected to provide borrowers with greater flexibility in managing their monthly financial obligations. By spreading loan repayments over a longer period, borrowers may have the option of paying lower monthly amortizations, depending on the amount borrowed, applicable interest rate, and terms offered by the lending institution.

From 3 Years to 5 Years, Now Up to 7 Years

The maximum repayment period for loans under the APDS Program has gradually been expanded over the years.

Previously, APDS loans were generally limited to a maximum repayment period of three years. In 2022, DepEd issued DepEd Order No. 004, s. 2022, extending the maximum loan term from three years to five years.

With the issuance of DepEd Order No. 20, s. 2026, the maximum allowable repayment period has now been further increased to seven years.

In summary:

Previous maximum: 3 years
Extended in 2022: 5 years
New maximum under DO 20, s. 2026: 7 years

The latest adjustment is intended to give DepEd employees more manageable repayment options and potentially reduce the amount deducted from their salaries each month.

Lower Monthly Amortization, Greater Financial Flexibility

One of the primary advantages of a longer repayment period is the possibility of a lower monthly loan amortization.

For teaching and non-teaching personnel who rely heavily on their monthly salaries for household expenses, education, utilities, food, transportation, and other necessities, a smaller monthly deduction may help leave more money available as take-home pay.

The measure is also in line with the government's continuing efforts to promote the welfare and financial well-being of teachers and other education personnel, following the directive of President Ferdinand R. Marcos Jr. to provide greater support for the country's educators.

The longer repayment period, however, should not automatically be interpreted as a lower overall cost of borrowing. While extending a loan may reduce the monthly installment, a borrower could pay more interest over the entire life of the loan depending on the lender's interest rate and other applicable charges.

DepEd personnel are therefore encouraged to carefully compare the monthly amortization, effective interest rate, total amount payable, and other loan conditions before choosing a repayment term.

What Is the APDS?

The Automatic Payroll Deduction System or APDS allows authorized deductions, including loan repayments to DepEd-accredited private lending institutions, to be deducted directly from the salaries of qualified DepEd personnel.

The program is regulated by DepEd to establish rules and safeguards governing participating institutions and salary deductions of personnel.

With the maximum repayment period now extended to seven years, borrowers will have an additional option when determining a loan term that is appropriate for their financial circumstances.

It is important to note that seven years is the maximum repayment period, not necessarily the required loan term for every borrower. Actual loan availability, amount, interest rates, repayment schedules, and other conditions will still depend on applicable DepEd regulations and the terms offered by accredited lending institutions.

A Welcome Development for DepEd Personnel

The extension of the APDS loan repayment period provides teaching and non-teaching personnel with greater flexibility in managing their finances.

For employees who need access to credit but want to avoid excessively high monthly deductions, the option of extending repayment for up to seven years may provide some financial breathing room and help preserve a larger portion of their monthly take-home pay.

DepEd personnel who are considering applying for a loan are advised to read the complete provisions of DepEd Order No. 20, s. 2026 and review the terms and conditions of accredited lending institutions before entering into any loan agreement.

Reference:
DepEd Order No. 20, s. 2026

Revised Loan Terms of Payment Under the Department of Education’s Automatic Payroll Deduction System Program