Students’ Loan Scheme and Access to University Education in Uganda: a case of Makerere University

Abstract

The purpose of the study was to determine the effect of Students’ Loan Scheme on access to university education in Uganda, a case study of Makerere University. The study took a quantitative approach. It was a correlational, cross-sectional survey design. The sample comprised of 231 students on Students’ Loan Scheme in Makerere University. Data were collected using Self – administered questionnaires. Data were analyzed using both descriptive statistics (such as mean, median and range) and inferential analysis that comprised of testing hypotheses using scatter diagrams and Pearson’s linear correlation (PLCC) coefficient. The findings showed that there was a significant positive correlation between Student Loan Targeting and Admission of students to University education. Further, there was no significant correlation between Student Loan coverage and Students’ retention in University education. The study also revealed that there was a significant positive correlation between Student loan repayment and Students’ retention in University education. The study concluded that Students’ loan scheme increased the admission of needy but academically qualified students to higher education. Also, Student retention was independent of the Loan Coverage. Further, it concluded that high willingness and ability to repay the loan motivated students to study and complete their studies hence this increased students’ retention in university education. The study recommended that Higher Education Students’ Financing Board (HESLFB) and Higher Education stake holders should disseminate in time all information about the student loan scheme. Further, the loan amount should be increased to cover academic and nonacademic expenses. Also, HESLFB should devise effective and efficient system to recover the loan funds. Finally, the universities should put in place mechanism to support students on loan scheme through counselling so that the loan burden does not affect their academic performance.