Between Financial Freedom and Debt: Insights from Public School Teachers in Philippines

Abstract

The decision to be debt-free or remain in debt is vital in shaping policies on loans for public-school teachers in Philippines. This study explores teachers’ willingness to repay debt, their proposed interventions, and the relationship between loan addiction and the ability to repay. Using a descriptive-correlational design and snowball sampling, 84 public-school teachers at the basic and tertiary levels responded to an online survey. Findings show that teachers generally agree on repaying their debts (M = 3.7 ± 0.47), although many are uncertain about their willpower to do so. While some appear to be addicted to loans, they rarely acknowledge this (M = 1.96 ± 0.77). Spiritual and emotional support is seen as a need. Respondents proposed government interventions, such as lowering interest rates and offering legal and financial literacy seminars. A statistically significant, moderate positive correlation (r = 0.372, p < 0.001) indicates that loan addiction may coexist with a strong psychological drive to eliminate debt. However, teaching level, years of service, and debt size did not significantly predict the likelihood of repayment based on multiple regression analysis. These insights are essential for developing targeted interventions for teachers, both those who demonstrate strong willpower and those struggling with loan dependency. The study recommends further research into the roles of income, financial literacy, mental health, and access to debt counseling as potential moderating or mediating factors in the relationship between loan addiction and repayment behavior.