Constraints of financing higher education in Tanzania through higher education students’ loans board (HESLB)

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Unversity of Dar es Salaam
This study investigated the constraints of financing higher education in Tanzania through Higher Education Students’ Loans Board (HESLB). A mixed method approach, with a survey design in particular was used. Data were gathered through questionnaires, interviews, focus group discussion and document analysis. The study used stratified, purposive and convenience sampling techniques to obtain 670 informants. Quantitative data were analyzed with the aid of SPSS version 20.0 while qualitative data were subjected to content analysis. The study findings revealed that the Board is constrained by limited resources, unemployment among graduates, increasing loan applicants, lack of national identity cards and uncontrolled tuition fees among others. The impact of these constraints to the HESLB performance were; delays of loans, inadequate funding of loan beneficiaries, student’s riots and poor loans recovery. The strategies adapted by HESLB to address these constraints include; enhancing HESLB financial sustainability, establishing student unit cost, charging value retention interest fee, automation of loans services and building HESLB own offices. The study concludes that the Board is facing a number of constraints from internal and external environment which impact its performance. As such, the study recommends that HESLB resource need level, needs to be clearly established and the government has to furnish the Board with adequate resources. Also, the criteria for neediness of loan need to be improved to target the needy students. Moreover, loans repayment should be mandatory. Similarly, revisiting of the HESLB Act No. 17 of 2007 is necessary so as to review grace period, interest rates, authority of the minister in charge and obligations of other stakeholders such as employers, parents, local leaders and guarantors.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF LB2342.2.T34K67)
Education, Higher, Finance, Higher Education Students' Loans boards, Tanzania
Kossey, M. M. (2014) Constraints of financing higher education in Tanzania through higher education students’ loans board (HESLB), Master dissertation, University of Dar es Salaam, Dar es Salaam