Issues and Challenges of Student Financing Systems in Africa: The Case of Tanzania

Abstract

This article investigates the challenges confronting student financing systems in Africa, with specific reference to Tanzania’s Higher Education Students’ Loans Board (HESLB). It shows that the major challenges include limited resources, unemployment among loan beneficiaries, increased loans applications, the lack of a national identification system, emigration of loan beneficiaries, poor policy and legal frameworks, and corruption among HESLB staff and loan beneficiaries. The article recommends that the HESLB should diversify its sources of funding to reduce dependence on government; enforce loan repayment through legislation that enables direct reimbursement from beneficiaries’ salaries; charge interest higher than the inflation rate; and embark on aggressive public education campaigns on the importance and benefits of the loan scheme and loan repayments.