Alternatives to Financing Higher Education in Tanzania

Abstract

The modality of funding Higher Education in Tanzania has been unrealistic due to increased enrollments, poor loan recovery, delayed payments of students’ loans and education budget cuts. Despite having these challenges unattended, literatures reveal that, the criteria and conditions used to select eligible Tanzanian students for loans seem to be inadequate and discriminatory, hence defeat the intended idea of streamlining the access to higher education through provision of loans. Thus, more efficacious ways of funding Higher Education have been sought so as to keep financial sustainability among Higher Learning Institutions. This article examines the trends of loan application and disbursement for Financial Years 2014/15 to 2018/19. It also analyses alternative ways of financing Higher Education in Tanzania. The study used a qualitative approach and exploratory design. A sample size of 50 participants was used. Content and descriptive analysis methods were used during analysis. Generally, the trend of loan application increases every year while the number of eligible loan applicants becomes less the number of total loan applicants. The number of successful loan applicants is almost half the number of eligible loan applicants. Parents’ involvement, soliciting international donors, institutional self-generated funding, direct local funding from government institutions, institutional business profit and private sector financing support were among the suggested ways of funding Higher Education in Tanzania. The study recommends to government policy makers to take immediate actions to embark on the suggested ways so as to maintain financial stability within HESLB and Higher Learning Institutions in Tanzania.