An Empirical Analysis of Financial Performance of Higher Education Students’ Loan Scheme (HESLS) In Tanzania.
Author(s)
Download Full PDF Pages: 45-59 | Views: 367 | Downloads: 115 | DOI: 10.5281/zenodo.3458870
Abstract
Higher education in Tanzania has become increasingly important on national agendas and has undergone profound mutations and reforms over the past decades. There has been growing diversity of higher education institutions and increasing the student’s demand that exceed the budget allocated by the government. This trend called for one organ to coordinate and supervise all issues related to students’ financing in higher education. In a view of that, the government established higher education students’ loans board (HESLB) to manage that activities, which started to operate in 2005. This study uses the regression model to examine financial indicators drawn from the CAMEL model to analyze the financial performance of HESLB operating in Tanzania. Findings show that the financial performance correlate significantly with all set of indicator variables (Government subvention, Current ratio, Cost ratio, Repayment rate, and Operating self-sufficiency). In addition, it was found in this research that ROE model approach is a better model for assessing financial performance of HESLB operating in the country than ROA. In the end, the study suggests that the HESLB should improve loan collections, control costs of operations, and reduce handling of non-earning current assets. Finally, the present results will be a useful tool for policymakers and education stakeholders in improving students’financing environment.
Keywords
Higher Education Students’ Loans scheme (HESLS), financial performance, financial drivers, nonprofit organization, HESLB Tanzania
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