Students’ Loans by Financial Institutions: The way to reduce a burden for Government Funding to Higher Education in Tanzania
Keywords:
Students’ Loans; Financial Institutions; Higher Learning Institutions; Government; feasibilityAbstract
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.
https://doi.org/10.26803/ijlter.16.11.6
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