Assessment of factors associated with student loan and scholarship and the achievement of a revolving fund model

Abstract

This study partly sought to assess the factors associated with the award of student loans and scholarships by the Higher Students Financing Board. These factors included; sex, region, residence (i.e. urban or rural), unavailability of a father (father absent) through either death, negligence or divorce, family income and the number of siblings of a successful loan applicant. The student loans awarded were analysed in three categories; those between Uganda Shillings (UShs.) 1.6 and 3 Million (the lower amount), those between U Shs. 3 and 3.4 Million (the optimal amount) and those between U Shs. 4.7 and 5.2 Million (the full amount).The key social economic characteristic of the successful loan applicants for the award of a full amount as opposed to the optimum amount included being female (p=0.042), having many siblings (p=0.046) and resident in rural area rural (p=0.007), and or whose father is absent due to death, divorce or negligence (p=0.000). Household income was not a significant predictor. For the award of scholarships, the key social economic characteristics of the successful loan applicants included being a resident in rural areas (p=0.008), from a household with low income (p=0.003) and whose father have low education level (p=0.001) or whose father is absent due to death, divorce or negligence (p=0.000). The factors such as the number of siblings (p=0.067), mother’s highest education level (p=0.867), college (p=0.427) and sex i.e. male (p=0.724) of the applicant were found not to be significant in determining the award of scholarship. The median annual salary for graduates of Bachelor of Science (BSc.) Civil Engineering was U Shs.17, 622,831, ranging from U Shs. (5,664,943 – 187,865,515). For Bachelor (B.) Nursing graduates, the median annual salary was U Shs.6, 994,841 ranging from U Shs. (2,518,307 – 171,364,292). The median annual salary for BSc. Education graduates was U Shs.3, 126,830 ranging from U Shs. (2,385,518 – 59,424,702). For Special Needs Education graduates, the median annual salary was U Shs. 4,038,062 ranging from U Shs. (2,726,880 – 121,854,588). The median annual salary for B. Medicine and Surgery graduates was U Shs.14, 947,770 ranging from U Shs. (4,957,899 – 300,000,000). The courses selected for this study had the following internal rates of returns. BSc. Civil Engineering (-15.02%), B. Nursing (-38.52%), BSc. Education (-30.78%), Special Needs Education (-76.80%), B. Medicine and Surgery (-12.85%). The internal rate of return for all the courses combined significantly dropped to -2.85%. However all the courses failed to register a positive internal rate of return. Inflation increased the internal rates of return by generally two percentage points.