Disconcerted Success of Students’ Loans in Financing Higher Education in Tanzania

Victoria Makulilo

Abstract


In recent years there has been a strong belief among some practitioners and academicians that the students’ Loans scheme in Tanzania performs well. One of the indicators used to measure such performance is the increased enrolments of students. However, evaluating the loans scheme based on quantity is inadequate. Therefore, the present article evaluates the performance of the loans scheme based on its two main objectives namely assisting the poor to access higher education and creating a revolving fund. The article notes poor performance by the scheme. Two observations are evident. Firstly, many students from poor backgrounds are forsaken by private financing of higher education; and secondly, low rates of loan repayments and recovery make the idea of a revolving fund a paradox. The high built-in subsidies; and ineffectiveness of the Loans Board to reduce administrative costs and the rate of default are necessary ailments.

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References


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