Special loan window for public school teachers pushed

MANILA, Philippines — Quezon City 2nd District Rep. Precious Hipolito-Castelo has filed a bill authorizing government-owned banks to open a special loan window that would grant low-interest loans to public school teachers.

According to House Bill No. 1015 or the proposed “Public School Teachers Special Loan Window Act,” the new loan facility would be different and separate from existing emergency loans for public school teachers, which usually impose high-interest rates.

In a statement Tuesday, Hipolito-Castelo said that unlike other noble professions, “teaching prescribes that teachers should serve as role models themselves.”

“To achieve this end, teachers should be allowed, or better still, [be] empowered to lead simple but decent lives, free from the dangers or risks of having to borrow money or financial resources from loan sharks,” she added.

The lawmaker also said the bill intends to help teachers who often fell victim to loan sharks.

“Their improved salaries and allowances have not truly reached the desired point where teachers no longer need to look for fund sources, such as loans or lending schemes, which only turn them into victims of loan sharks,” said Hipolito-Castelo.

READ: Public school teachers’ debts rose to P319B in 2 years – DepEd

The Department of Education revealed earlier this year that public school teachers owe a combined debt of at least P319 billion from the Government Service Insurance System (GSIS) and private lenders. This was an increase of P18 billion in just over two years. (Editor: Eden Estopace)

READ: Teachers fall prey to loan anomaly, but get no choice