Shifting from Government Bursaries to a Loan Scheme in Higher Education: Exploring the Zambian Experience in Student Financial Aid

Abstract

One of the current critical issues in higher education in Africa and globally is about making student loans available in a sustainable and cost-effective manner. The argument is more complicated for Africa because of the complexities associated with loan schemes and the general austerity that African countries find themselves in. This article presents a case study and conceptualizes the scenario of shifting government bursaries to a student loan scheme in Zambia's higher education sector. Based on student views (N=729) and international experience, the article presents student reactions to the announcement of the implementation of the loan scheme in Zambia. Other issues explored in detail include cost-effectiveness and sustainability, loan conditionalities and forms of assistance to poor students. The article also highlights, and provokes policymakers with, questions on student loan schemes based on international experience. These are related to the modalities of who bears the ultimate risks; when and how to make the recoveries; and difficulties associated with "means testing"

Loans and Scholarships in Africa’s Higher Education Finance: A Comparative Analysis of Capitation, Policy and Recoveries in Eleven Countries

“…The different financing and testing mechanisms are therefore put in place to promote access to tertiary education by students with sound intellectual capacity but with no financial capacity to pay for their education. For example, countries such as Kenya, Ghana, South Africa, Tanzania and Uganda, have introduced student bursaries and loans as a means of promoting equitable access to tertiary education and government financial subsidies (Tekleselassie & Johnstone, 2004;Masaiti, Mwelwa & Mwale, 2016). However, to ensure that loans and bursary grants are given to deserving students from poor families and households so that they access tertiary education, many African governments are now coming up with context specific 'means testing mechanisms' to ensure that only genuine households with no capacity to support their children to access post-secondary education are given the financial support to access quality higher education in areas of primary importance for both personal and national development.…”

Relevance of selected Social Science Degree programs on skills development and graduate employability in Zambia

“…This was the case following the Zambian government's shift in the student financing policy of 2018. It was biased and inclined to offer more student bursaries and loans to those who were enrolled for STEM degrees in public universities (Masaiti, Mwelwa, & Mwale, 2015) in line with the national skills development agenda to achieve the vision 2030 (GRZ, 2006), as espoused by the human capital theory. It could be concluded that the Bachelor of Social Work graduates stood a better chance of being employed compared to those in the other three social science degrees.…”

Do Teachers and Students Share the Same Feedback Meaning? A Quantitative Study among Secondary Schools in Bulawayo, Zimbabwe

“…While fees should be introduced, they should represent only a small proportion of the actual economic cost and should be accompanied by appropriate loan schemes or scholarships for the socially disadvantaged students. In this way, higher education will be available to all classes of youths in Africa (Masaiti, Mwelwa, and Mwale, 2016).…”