Introduction of student loan schemes in Uganda .Equity and Efficiency
Mechanisms of Financing higher Education in a developing country
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The proposal of introducing a student loan scheme comes at a time when the cost of University education is so high in developing countries. One of the greatest bottlenecks experienced in many countries adopting the scheme is high default rates. Irrespective of who receives the loan and at what interest rate, it has to be paid back if the scheme is to succeed. It is important to put into account that students cannot repay the loans without a source of income. Issuing a list of penalties to deal with loan defaulters who lack a source of income to repay the loans might bar potential beneficiaries...
The proposal of introducing a student loan scheme comes at a time when the cost of University education is so high in developing countries. One of the greatest bottlenecks experienced in many countries adopting the scheme is high default rates. Irrespective of who receives the loan and at what interest rate, it has to be paid back if the scheme is to succeed. It is important to put into account that students cannot repay the loans without a source of income. Issuing a list of penalties to deal with loan defaulters who lack a source of income to repay the loans might bar potential beneficiaries from the scheme. Joblessness is one of the greatest challenges facing graduates Which ever direction the scheme takes, one wonders what appropriate strategies governments will lay for the student loan scheme to attain high levels of efficiency and equality. It is therefore imperative to investigate the major bottlenecks that might affect the implementation of student loan schemes in developing countries.
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