Student Loans as a Mediator Between Financial Stress and Academic Engagement: Evidence from Philippine Higher Education
DOI:
https://doi.org/10.69569/jip.2025.674Keywords:
Financial stress, Student loan application, Academic engagement, Higher education institution, PhilippinesAbstract
This study investigates the mediating role of student loans in the relationship between financial stress and academic engagement among tertiary students in a private, for-profit higher education institution in the Philippines. Anchored in the Challenge–Hindrance Stressor Framework, the research explores how financial stress, commonly viewed as a hindrance, may also function as a challenge stressor that motivates adaptive academic behaviors. Using a quantitative, causal research design, data were collected from 377 students and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). Results show that financial stress significantly predicts student loan applications, positively influencing academic engagement. Moreover, financial stress directly affects engagement, suggesting that it may stimulate proactive coping responses in resource-constrained contexts. The findings extend the Challenge–Hindrance Stressor Framework to a non-Western educational context and point out the critical role of student loans as a financial lifeline that supports academic engagement, particularly in private institutions not covered by the free tuition provisions of Republic Act No. 10931. Beyond theoretical contributions on stress appraisal, the study maintains key policy implications: expanding student loan access, ensuring transparent financial aid, and integrating financial literacy programs are vital to complement existing reforms in Philippine higher education. The study calls for policies that strengthen equity and sustainability in financing private higher education by situating student loans as both an economic necessity and an academic enabler.
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