LATEST UPDATE on the DepEd's Implementation of 60-Day Loan Moratorium

Updates about DepEd’s implementation of loan moratorium provision under the Bayanihan Act 2 (BA2):

1. BA2 provision allows 60-day grace period for payment of loans falling until end of Dec 2020. Accrued interest shall apply after 60-day period if the loan amortisation (which was granted grace period) is not paid.

2. DepEd coordinated with the Department of Finance, Bangko Sentral ng Pilipinas, GSIS, PagIbig, other Government Financial Institutions (GFIs) and Private Lending Institutions (PLIs) from the time BA2 was signed as a law. This is to emphasize and place clarity on certain complexities that DepEd’s automatic payroll deduction system have in terms of number of government employees and loan transactions involve.

3. There should be a uniform application of the policies and adjustment in the APDS so that accuracy and integrity of the system are maintained.

4. At the same time and most important of all, DepEd management negotiated for the BEST TERM possible for its employees. We consulted, wrote officially and urged our GFIs and PLIs to not just grant 60-day grace period but to also GRANT LOAN MORATORIUM which means that loan term will be EXTENDED to 2 more months with NO EFFECT to the principal and interest loan amortisation as scheduled.

5. From the negotiations that DepEd made, GSIS and about 87 GFIs and PLIs granted the request of DepEd to choose loan moratorium and not just grace period.

6. The list of the GFIs and PLIs who gave favourable consideration to the request of Sec Liling Briones will be attached in the official memo for the purpose. Pls read the list carefully because if the GFI or PLI is not in the list, that means that borrower should pay back the loan payment refunded to them on or before December 31, 2020 so that no additional charges will be applied to their loan structure.

7. Hence, the official guidelines on the application of the loan moratorium as stated in BA2 shall include the following policies:

- GSIS loan amortisations will not be deducted to DepEd’s Nov/Dec payroll

- PLIs and other GFIs loan amortisations will not be deducted to DePEd’s on Oct/Nov payroll

- Borrowers may opt to pay over-the-counter the refunded loan amortisation if they don’t want to avail of the grace-period/moratorium

- DepEd’s APDS will extend all loan term structures to 2 months; no accrued interest will be applied in the system, PLIs or GFIs and corresponding borrowers have to settle any accrued interest outside the APDS

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Pls refer to the approved INTERNAL GUIDELINES ON THE IMPLEMENTATION OF SECTION 4 (uu) OF RA NO. 11494 which will be issued tomorrow, October 9, 2020.

Please pay attention to Attachment 1: List of PLIs and GFI under DepEd APDS who agreed to NOT impose any additional charges with the implementation of RA 11494 known as BA to recover as One Act; and Attachment 2: Assumption and sample computation

Source: DepEd Usec. Annalyn M. Sevilla