Borrowing for Quality of Life (Day 30)
by Rey Laguda with Charmie Lising(This is the 30th day of 50-day journey of DepEd Undersecretary Rey Laguda as being serialized here with his permission, culled from his Facebook account - Blogger/owner)
Education reform is not just about designing curriculum, building classrooms and facilities, and hiring teachers and personnel. It’s also about strengthening the organization and the bureaucracy mandated to oversee the entire education system of our country. It is important to work towards improving the quality of life of the people who operate within the bureaucracy, and one of the ways to do this is to help them attain financial security.
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image - pixabay |
In an effort to protect teachers from excessive loan interest rates and abusive collection practices, DepEd revamped the Automatic Payroll Deduction System (APDS) in 2003. By re-accrediting Private Lending Institutions (PLIs) that will be allowed to use the facility and formalizing memoranda of agreements with them, DepEd was able to set stricter policies on the use of APDS, which include putting a cap of 18% to the allowable nominal interest rates (approximately 33% Effective Interest Rate). Prior to this re-accreditation, PLIs were charging interest rates that were as high as a whopping 120%.