Students’ Loans by Financial Institutions: The Way to Reduce a Burden for Government Funding to Higher Education in Tanzania

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. https://doi.org/10.26803/ijlter.16.11. 6