LOAN AND PREMIUM ARREARS AMONG DEPED TEACHERS: BASIS FOR INTERVENTION PROGRAM

Abstract

Some teachers, regardless of their affiliation with implementing or non-implementing units have encountered arrears in loans and premiums with GSIS. Notably, a considerable number of teachers facing arrears belongs to implementing units, indicating a prevalent issue within this group. This study employed mixed-method research and used exploratory sequential design in investigating 36 teachers among schools in the Dipolog City Schools Division.  Most teachers in the implementing unit schools incurred arrears in loans and experience challenges in resolving them. These challenges have placed teachers in a difficult position, as they strive to manage their financial obligations while planning for retirement, prompting them to seek effective strategies to address their outstanding debts. The teachers attribute their financial struggles to two main factors: the perceived lack of transparency within GSIS and the tendency to overextend themselves through borrowing from external financial sources like lending. These practices have hindered their ability to make timely repayments on both loans and premiums, exacerbating their financial burdens. To resolve this issue, the GSIS offers a Financial Resilience and Recovery Program as an intervention for teachers with arrears. The program should offer financial literacy education and support for loan restructuring and maintain updated and accurate financial records while also fostering a culture of financial responsibility within schools. Its goal is to address existing issues related to arrears and contribute to the development of GSIS system that upholds transparency and accountability and prevents future loan delinquencies among government employees.

Some teachers, regardless of their affiliation with implementing or non-implementing units have encountered arrears in loans and premiums with GSIS. Notably, a considerable number of teachers facing arrears belongs to implementing units, indicating a prevalent issue within this group. This study employed mixed-method research and used exploratory sequential design in investigating 36 teachers among schools in the Dipolog City Schools Division.  Most teachers in the implementing unit schools incurred arrears in loans and experience challenges in resolving them. These challenges have placed teachers in a difficult position, as they strive to manage their financial obligations while planning for retirement, prompting them to seek effective strategies to address their outstanding debts. The teachers attribute their financial struggles to two main factors: the perceived lack of transparency within GSIS and the tendency to overextend themselves through borrowing from external financial sources like lending. These practices have hindered their ability to make timely repayments on both loans and premiums, exacerbating their financial burdens. To resolve this issue, the GSIS offers a Financial Resilience and Recovery Program as an intervention for teachers with arrears. The program should offer financial literacy education and support for loan restructuring and maintain updated and accurate financial records while also fostering a culture of financial responsibility within schools. Its goal is to address existing issues related to arrears and contribute to the development of GSIS system that upholds transparency and accountability and prevents future loan delinquencies among government employees.