I received complaints from our public school teachers about this new system introduced by the Government Service Insurance System (GSIS) when it comes to taking out loans. You know, most public school teachers depend on “London,” or loan dito, loan doon.
The GSIS must be having a heyday since Congress is considering to prioritize the agency in the Automatic Payroll Deduction System (APDS) in the General Appropriations Act. This means the salaries of public school teachers with outstanding GSIS loans will be deducted to pay these off.
Recently, GSIS introduced the GSIS Financial Assistance Loan, or GFAL, which supposedly helps public school teachers refinance their loans from private lending institutions (PLIs) for as much as P500,000. Imagine taking out a loan to pay off another loan, which leaves the borrower still in debt.
Some public school teachers are skeptical about this. It seems there is a brewing plan in government to boot out private lending institutions from the loan market, in favor of the GSIS. Let’s face the fact that public school teachers prefer to borrow from private lending institutions, rural and thrift banks in particular, or engage in 5-6. Some public school teachers revealed that banks are more efficient in processing their loans, provide better customer service, and often are more reliable in times of emergency. Quoting Mommy Dionisia, mother of boxing icon Manny “Pacman” Pacquiao, in her TV commercial for a remittance firm, “Walang hassle ug walay kuskos balungos.”
If the proposal from Congress to remove rural and thrift banks in the APDS pushes through, these PLIs will face an increase in bad loans and will fare badly in the Bangko Sentral ng Pilipinas. This heightened risk will force them out of the loan market, causing teachers to cling to loan sharks with usurious rates, a disaster in the making.
Did the Department of Education and GSIS think about this consequence? It’s not even rocket science.
The GSIS has a dismal record in managing and monitoring accrued loans of its members. Back in 2011, GSIS members were dismayed that they were not able to avail themselves of housing loans because of a growing number of members who weren’t able to pay their dues. In fact, former GSIS manager Roberto Vergara then admitted they didn’t have the right system because they are a pension fund, not a lending agency.
The GSIS sometimes doesn’t even post payments even though the salary loan had been paid in full years ago. By the way, some GSIS personnel will surely point fingers on who is to blame if their system fails. Talk about efficiency. And Congress wants them to be the top priority in the APDS?
GSIS doesn’t even have the proper monitoring system to check if the applicant has the capacity to pay. Releasing loans without assurance of payment is very unsustainable and will be disastrous for the GSIS.
I will not be surprised, when the pot starts calling the kettle black, if the GSIS will suddenly propose to Congress to prioritize them over the SSS, PhilHealth, and PAG-IBIG, in the salary deductions of all public personnel just to get their investment back.
President Duterte has been consistent in calling for efficiency in our public governance and Congress should heed this call. But not like this.
It is an insult, not only to the President, but also to our public school teachers, who are religious in paying their other dues because the APDS already guarantees good credit standing to PLIs.
Our honorable representatives should reconsider their priorities, especially in helping our public school teachers in addressing their financial problems. All it takes is to listen to their growing cry for financial security and stability.