Effects of Salary Loan Repayment Amount on the Welfare of Teachers in Secondary Schools in Songea District, Tanzania

This study examines the impact of salary loan repayment amounts on the welfare of secondary school teachers in Songea District, grounded in the Moral Hazard Theory, which suggests that shielding individuals from the full consequences of their actions can alter their behavior. Employing a convergent mixed methods design, the research targeted 309 teachers across 21 secondary schools, utilizing the Cohen formula to sample 60 teachers and the Mugenda and Mugenda formula for selecting 10 schools [18]. Data was collected through questionnaires and interviews, ensuring validity and reliability through expert feedback, pilot testing, and Cronbach's alpha analysis (Alpha equal sign 0.707). Analyzed using SPSS Version 22, quantitative data were presented in tables, frequencies, means, and standard deviations, while qualitative data were contextually analyzed. The findings revealed that loan repayment amounts significantly affect teacher welfare, with reasonable repayment structures supporting career development and overall well being. The study recommends policymakers and educational authorities design affordable loan repayment structures and promote financial literacy programs. Future research should explore the affordability of monthly payments on teachers welfare. Ethical considerations were meticulously followed, including confidentiality and proper citation of sources.