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7 Reasons why teachers end up with too many Salary Loans

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The Department of Education (DepEd) attempts to find out why public school teachers are more likely to get into higher and numerous salary loans compared to other government employees.

“I want to find out that’s why I’m looking at their spending patterns and looking into their propensity to borrow compared to other households,” DepEd Secretary Leonor Briones said.

Based on Philippine Institute for Developmental Studies (PIDS) study, public school teachers tend to borrow money 50% higher compared to other government employees like the police and nurses.



Base on the research, we list the 7 most common reason why teachers are into more and higher salary loans:

  1. To support the education of their children
  2. Payment for housing loans
  3. Travel and leisure
  4. The higher cost of living (with very little salary increase)
  5. Postgraduate studies
  6. Support for extended families
  7. Other emergency situations

Sec. Leonor Briones also noted that many public school teachers still borrow even if they have several loans from various lending institutions. And tend to loan higher than other government and private employees considering the bonuses and other incentives to receive.

She also said that DepEd has to know the spending patterns of the teachers that might be a contributing factor to several and higher teacher salary loans.

What do you think? Aside from financial management training or having a secondary source of income what might help our fellow teacher not to over-borrow?




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3 thoughts on “7 Reasons why teachers end up with too many Salary Loans”

  1. Nice.That’s wonderful study Please give me feedback on why? I’m wondering not only teachers but some filipino’s addicted to have loans in the end they making more debt to pay the past debt and no more ending borrowing money? even their leisures they borrowing from 5/6. I hope you understand my english is so bad. this is my email [email protected]

  2. Hi.. Good day, may i knw the fullname of the author of this article. I just wanted to cite this in my study.. Thank u.
    This is Analyn Apatan

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