Challenges of financing higher education in developing countries

Abstract

This study sought to find out the challenges that are being faced by the Higher Education Loans Board (HELB) as it strives to fulfill its mandate of financing needy Kenyans pursuing higher education. The need for this study emerged from the fact when HELB was established in 1995, it was given the mandate of financing needy Kenyans pursuing higher education. But despite this, majority of form four leavers attain the university entry grade of C+ and above but only about 30% of them are admitted to institutions of higher learning either in the government sponsored or in the self sponsored programs. The study was guided by three main objectives, first to find out from HELB management, who are the implementers of higher education financing policies, what challenges they are facing. Second who the management thinks is to blame for the young human resource wastage thirdly what the management thinks can be done to address these challenges and enable HELB fully fulfill its mandate. Data was collected using a questionnaire to the management of HELB with both open ended and structured questions to enable them give their opinions and also provide specific answers respectively. Data was then analyzed by way of grouping similar responses together and percentages of the number of respondents with similar responses calculated. This was mainly a qualitative research as it sought to get opinions of the various heads of departments who are in different areas of operation within HELB. The three major challenges that were identified by the respondent are: insufficient funds, increasing number of needy students, and low recovery rate. The respondents thought the blame for this young human resources wastage lies with the government. The main suggestions to address these challenges were stated as government to increase funding to HELB and stimulate economic growth to create job opportunities. This would enable past beneficiaries' service their loans. HELB should embark on mobilizing funds from other sources to meet the rising demand.