A Research report submitted in partial fulfillment of the Requirements for Award of the Bachelor of Science in Economics Policy and Planning (BSc.Eco- EPP) of Mzumbe University
The study investigates factors affecting the repayment of higher education loan among beneficiaries in Tanzania. A case study of Dar es Salaam Tanzania. The specific objective of the study include (a) to determine the impact of financial capacity of beneficiaries on repayment of higher education loans in Dar es Salaam Tanzania, (b) to establish whether students' perception affects repayments of higher education loans in Dar es Salaam Tanzania, and (c) to examine the effect of Higher education students loans board policy/legal obligation on repayment of higher education loan by beneficiaries in Dar es Salaam Tanzania. The human capital theory was employed to show the relationship between dependent and independent variables. Cross-section data from 67randomly selected respondent in Dar es Salaam Tanzania was used. In addition beneficiaries and employees of HESLB were selected through the purposive sampling techniques. Descriptive and inferential statistical analysis were used hence probit regression was used with STATA. The finding shows that there is a positive relationship between willing to pay back loan and employment, income level, parent, awareness and penalty. The finding also discovers that affect repayment of higher education loan, income difference among beneficiaries and unemployment rate to beneficiaries. in view of foregoing the study recommended The HESLB should be independent of the government this will enable to reduce the political intervention, awareness creation by the Higher student loan board through different mass media and other means such that conferences, training, and meeting.