Higher education loans eligibility in Tanzania: targeting or screening, a case study of the University of Dar es Salaam (UDSM-main campus) and the Hubert Kairuki memorial university (HKMU)

This study investigated Loans Eligibility for Higher Education in Tanzania and explored as to whether the scheme targets or screens loan applicants. The objectives that guided the study are, to examine the extent to which the loans scheme is being selective/targeting beneficiaries in relation to their Social Economic Status (SES) and therefore determining who are really benefiting from the loans scheme in Tanzania; to assess the extent to which means testing is feasible in the scheme; and to determine the extent to which the loan board takes on board global loans objectives. 'The study sampled 170 respondents from two Higher Learning Institutions (H1,Is), that is, the University of Dar es Salaam (UDSM) and Hubert Kairuki Memorial University (1-11(1VRJ). 125 respondents were from UDSM, 43 from HKMU, and 2 from Higher Education Students' Loans Board (HESLB). Methods used for data collection were conducting interviews, administering questionnaires, and documentary review. It was found out that, the loan scheme in Tanzania generally screens and not targeting the needy, because, most applicants seem to belong in the low and middle SES groups, which do not represent the real poor. The issue of means testing feasibility in Tanzanians loans scheme was seen to be unclear due to inconsistencies in responses from respondents. It was found out that academic performance, the only objective criterion used in the means testing excludes many potential students mostly the poor from accessing higher education, because most of them score division 3 and not 1 & 2 as the criterion requires. It is therefore recommended that, since HESLB has limited funds, and cannot provide full loans to all students, then it should target few and give them full loans. Also, HESLB should have a reliable and ideal eligibility criterion that encompasses other wealth proxies apart from academic performance. A study to explore the effects of using & 2nd for girls) as sole eligibility criteria towards academic divisions (et for boys and et course disciplines choices programs in the HLIs is recommended.