Beneficiaries' perceptions of student loan repayment: insights from the Zambian context
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Date
2025
Authors
Mugala, Alex ; Daka,Harrison
Journal Title
Journal ISSN
Volume Title
Publisher
Mulungushi University Multidisciplinary Journal
Abstract
This study explored the perceptions of beneficiaries towards student loan repayment in Zambia. The study
was guided by the Ability to Pay Theory. The researcher employed pragmatism researcher paradigm and
an embedded design. The respondents were sampled using simple random sampling (students), non
discriminative snowball sampling (graduates) and expert purposive sampling (key informants). This study
encompassed a sample of 1400 students, 18 graduates, 1 Ministry of Education Official as well as 6
members of staff at Higher Education Loans and Scholarship Board (HELSB). Questionnaires and
interview guides were used to collect quantitative and qualitative data respectively. The quantitative data
collected was analysed using a software commonly known as SPSS and qualitative data was analysed
using thematic analysis. The findings of the study indicated that the interest rate is relatively high.
Despite indicating that the interest rate is too high, some beneficiaries stressed that they will pay their
student loans in order for the government to continue supporting other needy students. Based on the
findings and conclusions, the following recommendations were made: HELSB must consider reducing the
interest rate and ensure that the loan deductions are reduced to a fair amount, preferably, the deductions
should be proportional to a person’s basic salary. HELSB needs to insure the loans because loan
insurance considerably reduces the educational debt's financial risk. In order to guarantee that these
requirements are laid out explicitly in the agreement deed, HELSB must make sure that borrowers are
well-informed about their obligations to repay their loans at the time of application. To aid in the tracing
down of beneficiaries whose loans have matured, HELSB needs to establish closer relationships with
higher educational institutions, student organisations/unions, and alumni networks. They should also
work more closely with employing agencies and employers to ensure timely repayment and recovery of
loans. In an effort to increase the employers' compliance levels, HELSB management ought to think about
devoting additional resources to leading compliance visits.