Volume 13, Issue 1 (January 2026), Pages: 174-182

----------------------------------------------

 Original Research Paper

Teacher indebtedness in the digital era: A mixed-methods study of lending institutions and teacher performance in the Philippines

 Author(s): 

 Fortune Josephine E. Sagnit *

 Affiliation(s):

 Graduate School, Nueva Ecija University of Science and Technology, Cabanatuan City, Philippines

 Full text

    Full Text - PDF

 * Corresponding Author. 

   Corresponding author's ORCID profile:  https://orcid.org/0000-0001-7766-4081

 Digital Object Identifier (DOI)

  https://doi.org/10.21833/ijaas.2026.01.018

 Abstract

The aim of this study was to examine teacher indebtedness, referred to as the “credutrap,” and its effects on the job performance of public-school teachers in Nueva Ecija, Philippines. Using a convergent parallel mixed-methods approach, the study analyzed survey data from 150 teachers and complemented the results with focus group discussions and key informant interviews. The findings showed that most teachers depend mainly on government-backed lending institutions, followed by private banks and informal lenders, which often results in long-term debt cycles. Correlation analysis identified significant relationships between indebtedness and job performance, particularly increased stress, absenteeism, tardiness, and reduced preparation for teaching. Qualitative results further revealed the ongoing psychological pressure caused by debt, negative effects on instructional quality, risky financial practices, and the normalization of borrowing within the teaching profession, despite strong professional dedication. The study concludes that teacher indebtedness is not only a financial problem but also an ethical and systemic issue that requires comprehensive solutions. The proposed framework highlights the need for financial literacy education, school-based financial wellness programs, stronger regulation of lending practices, livelihood support, and professional development that raises awareness of the link between debt and professional responsibility. These measures are necessary to protect teacher well-being, improve educational equity, and support sustainable development in the education sector.

 © 2026 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license ( http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

 Teacher indebtedness, Job performance, Financial stress, Mixed-methods research, Public school teachers

 Article history

 Received 21 August 2025, Received in revised form 1 January 2026, Accepted 8 January 2026

 Acknowledgment

The author extends sincere gratitude to the public-school teachers and administrators who generously shared their time and experiences, as well as to the Department of Education officials in Nueva Ecija for their cooperation and support. Special thanks are also given to academic advisers and panel members for their valuable insights and guidance throughout the research process. 

 Compliance with ethical standards

 Ethical considerations

The study adhered to ethical research practices in accordance with the standards of responsible conduct. Informed consent was obtained from all participants prior to data collection, and they were assured of the confidentiality and anonymity of their responses. All data were used solely for academic purposes, with strict compliance to the provisions of the Data Privacy Act of 2012 in the Philippines to ensure that no personally identifiable information was disclosed. Participation was voluntary, and respondents were free to withdraw at any stage without penalty.

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Sagnit FJE (2026). Teacher indebtedness in the digital era: A mixed-methods study of lending institutions and teacher performance in the Philippines. International Journal of Advanced and Applied Sciences, 13(1): 174-182

  Permanent Link to this page

 Figures

 No Figure

 Tables

 No Table

----------------------------------------------   

 References (26)

1. Basyouni SS and El Keshky MES (2021). Job insecurity, work-related flow, and financial anxiety in the midst of COVID-19 pandemic and economic downturn. Frontiers in Psychology, 12: 632265.  https://doi.org/10.3389/fpsyg.2021.632265    [Google Scholar] PMid:34335356 PMCid:PMC8320320
2. Binaluyo JP, Santos AR, and Agustin NB (2024). Challenges and opportunities for digital transformation in Philippine microfinance institutions. International Journal of Economics and Financial Issues, 14(5): 269-278.  https://doi.org/10.32479/ijefi.16526    [Google Scholar]
3. Booth J, Coldwell M, Müller LM, Perry E, and Zuccollo J (2021). Mid-career teachers: A mixed methods scoping study of professional development, career progression and retention. Education Sciences, 11(6): 299.  https://doi.org/10.3390/educsci11060299    [Google Scholar]
4. Cohen J (1988). Statistical power analysis for the behavioral sciences. 2nd Edition, Routledge, New York, USA.  https://doi.org/10.4324/9780203771587    [Google Scholar]
5. Geraci A, Di Domenico L, Inguglia C, and D’Amico A (2023). Teachers’ emotional intelligence, burnout, work engagement, and self-efficacy during COVID-19 lockdown. Behavioral Sciences, 13(4): 296.  https://doi.org/10.3390/bs13040296    [Google Scholar] PMid:37102810 PMCid:PMC10135634
6. Kenny ME, Haase RF, Tsai BW, Medvide MB, and Davila A (2022). Applying the psychology of working theory for understanding adaptive career progress of youth. Journal of Career Assessment, 30(4): 635-657.  https://doi.org/10.1177/10690727211067699    [Google Scholar]
7. Kumar M, Madi M, Vineetha R, and Pentapati KC (2022). Impact of the COVID-19 pandemic on graduating dental interns: The students’ perspective. Medicine and Pharmacy Reports, 95(3): 311-319.  https://doi.org/10.15386/mpr-2121    [Google Scholar] PMid:36060505 PMCid:PMC9387575
8. Kwiatkowska-Ciotucha D, Załuska U, and Kozyra C (2021). The perception of occupation by hospital nurses in Poland and Germany in terms of the risk of excessive stress and burnout as well as possible coping and preventive solutions. International Journal of Environmental Research and Public Health, 18(4): 1797.  https://doi.org/10.3390/ijerph18041797    [Google Scholar] PMid:33673223 PMCid:PMC7917629
9. Lacey AJ, Banerjee R, and Lester KJ (2024). “It felt a bit wartime”: Teacher perspectives of social and emotional well‐being support in primary schools during COVID‐19. Psychology in the Schools, 61(5): 1982-1997.  https://doi.org/10.1002/pits.23147    [Google Scholar]
10. Lin J, Galosy J, Ross C, Watts J, and Wilson G (2025). Developing teacher leader efficacy to address attrition. School Science and Mathematics, 125(4): 414-425.  https://doi.org/10.1111/ssm.18338    [Google Scholar]
11. Lizana PA and Lera L (2022). Depression, anxiety, and stress among teachers during the second COVID-19 wave. International Journal of Environmental Research and Public Health, 19(10): 5968.  https://doi.org/10.3390/ijerph19105968    [Google Scholar] PMid:35627505 PMCid:PMC9140393
12. Motti‐Stefanidi F, Pavlopoulos V, Mastrotheodoros S, and Asendorpf JB (2022). Resilience during a great economic recession: Social and personal resources for youth's positive adaptation in the school context. Journal of Adolescence, 94(4): 667-683.  https://doi.org/10.1002/jad.12055    [Google Scholar] PMid:35614855
13. Ozamiz-Etxebarria N, Berasategi Santxo N, Idoiaga Mondragon N, and Dosil Santamaría M (2021). The psychological state of teachers during the COVID-19 crisis: The challenge of returning to face-to-face teaching. Frontiers in Psychology, 11: 620718.  https://doi.org/10.3389/fpsyg.2020.620718    [Google Scholar] PMid:33510694 PMCid:PMC7835279
14. Parthasarathy N, Li F, Zhang F et al. (2022). A cross-sectional study analyzing predictors of perceived stress among elementary school teachers during the COVID-19 pandemic. Workplace Health & Safety, 70(4): 180-187.  https://doi.org/10.1177/21650799211070733    [Google Scholar] PMid:35392748
15. Pereira H, Gonçalves VO, and Assis RMD (2021). Burnout, organizational self-efficacy and self-esteem among Brazilian teachers during the COVID-19 pandemic. European Journal of Investigation in Health, Psychology and Education, 11(3): 795-803.  https://doi.org/10.3390/ejihpe11030057    [Google Scholar] PMid:34563070 PMCid:PMC8544215
16. Platt IA, Kannangara C, Carson J, and Tytherleigh M (2021). Heuristic assessment of psychological interventions in schools (HAPI schools). Psychology in the Schools, 58(7): 1399-1415.  https://doi.org/10.1002/pits.22527    [Google Scholar]
17. Preis D and Jara D (2023). Leveraging co-teaching as a social justice pedagogy: What school leaders need to know. NASSP Bulletin, 107(4): 364-390.  https://doi.org/10.1177/01926365231211912    [Google Scholar]
18. Quach HL, Do CLT, Dang GX, Nguyen TM, Le TC, and Nguyen HT (2024). University lecturers’ perceived stress and self-rated health during COVID-19. Work, 78(4): 903-916.  https://doi.org/10.3233/WOR-230265    [Google Scholar] PMid:38108369
19. Salton Y, Riddle S, and Baguley M (2022). The ‘good’ teacher in an era of professional standards: Policy frameworks and lived realities. Teachers and Teaching, 28(1): 51-63.  https://doi.org/10.1080/13540602.2021.2017274    [Google Scholar]
20. Santos AR (2024). The role of digital marketing in shaping students’ attitudes towards health care professions. International Review of Management and Marketing, 14(3): 26-33.  https://doi.org/10.32479/irmm.16131    [Google Scholar]
21. Swigonski NL, James B, Wynns W, and Casavan K (2021). Physical, mental, and financial stress impacts of COVID-19 on early childhood educators. Early Childhood Education Journal, 49: 799-806.  https://doi.org/10.1007/s10643-021-01223-z    [Google Scholar] PMid:34220181 PMCid:PMC8237542
22. Tuliao RC, Santos AR, and Ortega SA (2025). The role of mobile phones in facilitating business education during the transition to new normal learning models. International Review of Management and Marketing, 15(1): 146-158.  https://doi.org/10.32479/irmm.17556    [Google Scholar]
23. Umeji IC (2024). Evaluating the effectiveness of human resources practices on teaching and learning outcomes in primary education. Human Resources Management and Services, 6(3): 3490-3490.  https://doi.org/10.18282/hrms.v6i3.3490    [Google Scholar]
24. Vatou A, Gregoriadis A, Evagelou-Tsitiridou M et al. (2024). Cross-cultural validation of teachers social self-efficacy scale: Insights from Cyprus, Greece, and Portugal. Education Sciences, 14(8): 840.  https://doi.org/10.3390/educsci14080840    [Google Scholar]
25. Venida AC (2022). Exploring Generation Z teachers’ work values: Implications to educational leadership and management. International Journal of Education, 15(1): 1-9.  https://doi.org/10.17509/ije.v15i1.46153    [Google Scholar]
26. Zaimovic A, Torlakovic A, Arnaut-Berilo A, Zaimovic T, Dedovic L, and Nuhic Meskovic M (2023). Mapping financial literacy: A systematic literature review of determinants and recent trends. Sustainability, 15(12): 9358.  https://doi.org/10.3390/su15129358    [Google Scholar]