The Influence of Higher Education Student Loans Scheme In Nurturing Graduates’ Future: The Case of Secondary School Teachers in Tanzania

Abstract

This paper examines the influence of higher education student’s loans scheme in nurturing graduate’s future in Tanzania by taking the  case of secondary school teachers. Semi-structured interviews and a survey were used to collect data from 160 sampled beneficiaries of  higher education students’ loans scheme. The findings revealed that, though HESLB has succeeded to support many students who  graduated and enter into the labour market either in public or private sectors, the potential return of such investment to most of the  graduates—such as the ability to own social and economic assets like land, houses, capital as well as to establish sustainable families— has been realized to a lesser extent. The expectation of investing in education is that, although costly, it brings benefits in the future  through spurred economic growth and increased earnings that can provide space for future long-life choices, and better service delivery in work places. However, the results are on the contrary as the majority falls into lowincome jobs, which consequently subject graduates  to unmanageable and prolonged HESLB debts recovery. This paper recommends the reduction of deduction rates of HESLB’s loans, and  other conditions that subsequently increases the amount size of the loans. The government and the private sector, on the other hand,  should look into annual salary increments so as to enable graduates to repay HESLB’s loans, as well as attain their life expectations  adequately and sustainably.