Attitude towards student loans among university students: a case study of Makerere University

Abstract

The objective of this study was to examine the students’ attitude towards student loans on access to higher education in Uganda, to assess the level of availability and accessibility of student loans, and to determine the extent to which access to student loans affects the number of students attaining higher education in Uganda. A sample of 100 Makerere university students was selected and primary data was collected using questionnaires through google forms that were sent to the students online. The analysis was done using frequency distribution and bivariate analysis and multivariate analysis in Stata. In the results, a small proportion of the respondents had access to student loans (12%), 57.0% of the respondents were males and majority were single (88.0%). A considerate proportion of the respondents come from urban areas (64.0 %), sponsored by their parents/guardians (51.0%). Only three out of every ten respondents are orphans (30.0%), and majority of the respondents have knowledge about student loans (81.0%).In the bivariate analysis, it was found that knowledge about student loans, students’ willingness to borrow, perception the loan will affect quality of education after graduation, parental influence, income status and parents still alive had a significant effect on access to student loans(p<0.1).From the multivariate analysis, it was found that the factor that significantly affects access to student loans was parents still alive(p<0.05). The findings indicate the need to (i) encourage banks and other financial institutions to make sure they are involved in supporting the government in its priority of increasing the human capital in Uganda (ii) collaborate with donors and the private sector, including banks and other financial institutions to start student loan funds and programs (iii) sensitize students and parents (iv) work closely with banks to make sure various private loans conditions, including the interest rate and length of payment, are reasonable.