Reframing Financial Education in the Algorithmic Age: A Critical Inquiry into Digital Lending and Consumptive Culture among Indonesian University Students

Abstract

This study conducts a critical inquiry into the phenomenon of digital lending and consumptive culture among Indonesian university students, with the aim of reframing financial education in the algorithmic age. Using a qualitative critical inquiry design, the study interviewed 20 students from various types of higher education institutions who had experience using digital lending platforms such as ShopeePay Later, Kredivo, Akulaku, and Dana PayLater. A reflexive thematic analysis produced three main findings. First, frictionless onboarding, in the form of registration taking 10 to 30 minutes without adequate verification, together with limit-increase notifications and illusory discounts, functions as a structural trap that exploits students’ psychological vulnerabilities. Second, the motivations behind borrowing span a wide spectrum, from aspirational consumption (game skins, concert tickets, viral skincare) to academic survival (tuition fees, fieldwork costs, thesis components, medicine for sick parents), indicating that the failure of the education system is the true root of the problem. Third, a severe pedagogical gap exists between the normative financial education students receive and the algorithmic reality of the platforms, yet algorithmic awareness can emerge through dialogic reflection. The study concludes that reframing financial education requires simultaneous intervention: platform regulation that protects users, reform of the education financing system, and the development of a critical financial pedagogy that equips students to resist algorithmic manipulation.