Effects of Student Loan Administration Mechanisms on Access to University Education in Uganda

Abstract

This study examines the effect of student loan administration arrangements on access to higher education in Uganda, utilising primarily quantitative and little qualitative evidence derived from a cross-sectional survey of 217 university students selected through stratified random sampling. In applying regression analysis, the study demonstrated a highly significant relationship between funding adequacy and access (R = 0.642, p < 0.01), with perceived funding accounting for 41% of the variation in access. For every one-unit increase in loan perceived adequacy, access increased by 47%, highlighting the key role of sufficient financial provision. The study also determined a moderate but very significant positive correlation between the inclusiveness of the loan scheme—measured in terms of rural coverage, transparency, and publicity—and access among low-income students (R = 0.537, p < 0.01), with 28.4% of the variance accounted for by inclusiveness. Qualitative data suggest that rural and disadvantaged students are discouraged by complex paperwork, the absence of outreach efforts, and language barriers. Additionally, the timeliness of loan approval and disbursement was highly related to student retention (R = 0.491, p < 0.01), with an Odds Ratio of 3.10, such that students with timely disbursements were over three times as likely to remain enrolled. These findings affirm that adequacy of funding, administrative inclusiveness, and timely disbursement are primary determinants of access and persistence. The paper concludes by urging the Ministry of Education, HESFB, and stakeholders to enhance outreach, decentralise service delivery, improve disbursement efficiency, and target support for rural, female, and disadvantaged students to achieve transformative and sustained access to higher education in Uganda