MANILA - Finance Secretary Carlos Dominguez is calling on the Land Bank of the Philippines and the Government Service Insurance System to come up with a refinancing program for public school teachers who are saddled with debt, his office said Thursday.

The "easy to pay, low interest" scheme is needed after a recent report by the GSIS showed that the Department of Education had the highest default rate on loans from the pension fund at 40 percent, the Department of Finance said in a statement.

The teachers can't pay their GSIS loans because they are also paying high interest on borrowings from private institutions, the DOF said.

Low interest on refinancing will also help wean the teachers off private lenders, who charge higher interest, the DOF said.