Students' loans in financing higher education in Tanzania have been subjected to many researches. However, less information is available on how the success of students' loans in financing higher education can be revealed. Therefore the purpose of this study is to examine the factors indicating the success of students' loans in financing higher education in Tanzania.Using data collected from a larger cross sectional survey in Tanzania, this study found that students loans in financing higher education in Tanzania is successful as it increases enrollment of students in higher learning institutions, the study also revealed that Higher Education Students' Loans Board (HESLB) is employing enough efforts to recover loans granted to loans beneficiaries since 1994 as well as the guidelines and criteria for granting loans was found to be satisfactory.The study recommend that, enrollment decision making has been affected by other factors other than a successful students' loan financing, these factors includes political factors, economical factors, family influences and school impacts. Therefore for better understanding of the successful students' loans financing in Tanzania these factors need to be considered too. To ensure more effective recovery of already issued students loans since 1994, HESLB is recommended to institute a sound financial management which include setting appropriate interest rates to cover inflation in order to maintain the capital value of the loan fund and covering administrative costs as well as presence of adequate legal framework to ensure that students' loans are legally enforceable to reduce default among loan beneficiaries. Guidelines and criteria should be improved to be more effective such as the inclusion of economics factors to measure the economic ability among loans applicants for instance presence of collateral security.
Abstract. Students' Loans are Government Loans extended to students in Higher Learning Institutions (HLIs), these Loans has to be repaid back on or after expiry of the grace period (HESLB, 2004). The purpose of this study is to assess the feasibility of engaging financial institutions to partner with the Government in financing higher education by addressing the following objectives:(i) to determine whether there is policy consideration for students' loans provision by financial institutions (ii) to examine the readiness of the students in the higher learning institutions to be financed by financial institutions (iii) to investigate the readiness of the financial institutions to provide loans to students of the higher learning institutions. Data were collected through interviews, review of various documents and questionnaires in which 90 respondents were obtained 7 from financial institutions and 83 from higher learning institutions. Software package for statistical science (SPSS) and content analysis was used to analyse data, results of the analysis were presented in tabular form, frequency distribution table and the bar charts. It was concluded that financial institutions in Tanzania does not have the policy to support students' loans provision hence they are not ready, students' in higher learning institutions are ready to be financed by financial institutions. The study recommends that the financial institutions in Tanzania should establish students' loans provision policy in their operations, universities or colleges to include policy which allows students to seek for alternative funding for their education other than the Government. Timely repayment among Students for smooth operation of the financial institutions. Education by HESLB on the need for alternative funding from financial institutions. Financial Institutions for Higher Education Financing.
The cost of students’ loans defaulting has lead to a serious discussion among participants. Substantial attention has been made on the students’ loans and its impact on higher education finances while researches on students’ loans defaults have not been taken for more than a decade. Therefore this study examines the influence of students’ loans borrowers’ characteristics on default rate in Tanzania by taking into consideration the background characteristics termed as pre-college measures, these factors includes age, gender and attitude. This study was conducted in Dar es salaam region, were by five universities from the region formed the basis of the population and respondents encompasses only students who were loans beneficiaries from these universities/colleges. Data were collected from 150 respondents. Data collected were analyzed using Software Package for Statistical Science (SPSS) and the techniques used for data analysis were regression and correlation. The study concluded that age, gender and attitude has an influence on the students’ loans default rate. The study also recommends that higher education students’ loans board (HESLB) should conduct an attitude tests among loans applicants before loans provision by using personal interview and observation by competent psychologists on behavioural science by conducting psychomotor test to understand the attitude among the loans applicants, those with negative attitude should be declared ineligible for students’ loans. Age should be given priority by HESLB before loans provision only applicants with the age of 18-24 years should be considered as eligible for students’ loans. Strict rules and regulation against males applicants should be instituted by HESLB to ensure their ability and willingness to repay back the loans for instance presence of genuine grantor and adequate collateral security. Students’ loans beneficiaries should be educated by HESLB to reduce confusion on repayment process.
<p>This study was designed to investigate the influence of the implementation of the best practices in repayment in the pre college preparation, in the in college period and in the after college period (the grace period and repayment) in increasing collections of the due students’ loans. The study was geared towards achieving the following objectives: (1) To assess the influence of the implementations of the best practices in repayment in the Pre college preparations in improving collections of the due students loans; (2) To examine the influence of the implementations of the best practices in repayment in the in college period in improving collections of the due students loans; (3) To investigate the influence of the implementations of the best practices in repayment in the after college period (the grace period and repayment) in improving collections of the due students loans.</p><p>Data were collected from parents, prospective loans beneficiaries and students’ loans beneficiaries in Dar es salaam city, in this study 5 secondary schools (Azania, Zanaki, Jangwani, Mbezi and Makongo), 5 universities (UDSM, DUCE, CBE, IFM and DIT) and 4 Organizations (HESLB, TPB, NBC and DUCE Academic staff) were visited. Data were collected from 267 respondents, 138 were from Kinondoni district, 65 from Ilala district, and 64 from Temeke. Data collected were analysed using the Statistical Package for Social Science (SPSS) data analysis tool.</p><p>The study concluded that, the implementations of the best practice in repayment in the pre college preparation, in the in college period and in the after college period (the grace period and repayment) has an influence in increasing collections of the due students’ loans. In order to address these conclusions, the study recommends that HESLB should ensure the early education to the existing models and presentation to promote value of education, in the pre college preparations, presence of students financial aid offices, entry and exit counselling sessions, in the in college period as well as making sure that beneficiaries are reminded to repay, maintenance of the regular contacts with borrowers as well as establishment of contacts with dropouts in the after college period.</p>
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