Examination of Awareness among University Students in Compliance with Loan Application Requirements in the Northern Zone of Tanzania

Abstract

This study examined awareness among university students in compliance with loan application requirements in the Northern zone of Tanzania. The study was guided by the human capital theory by Gary Backer (1964). The study employed a convergent design under a mixed-methods research approach. The target population of the study was 11 universities, 3000 Second year undergraduate university students, 5 HESLB Personnel, 11 loan Officers represented HESLB at each university used in the study, and 11 Ministers of finance from the students' government from selected universities in the Northern Zone of Tanzania. Probability and non-probability sampling techniques were employed to obtain a sample of 300 second-year undergraduate students, 4 universities/colleges, 4 Ministers of Finances from the Student Government, and 3 loan officers who represent the HESLB in each University used in the study. The study engaged questionnaires, a document analysis guide, and an interview guide to collect data for the study. Content and face validity were ensured by MWECAU research experts. The reliability of questionnaires for Likert-type items was estimated using Cronbach's Alpha Coefficient, whereby r= 0.757 from students, whereas qualitative data were established through peer debriefing and triangulation. Descriptive statistics with the aid of the (SPSS) version 22 was used to analyze quantitative data and qualitative data were analyzed thematically by transcribing the information, coding, and themes supported with direct quotations. The study found that the criteria employed by HESLB had been achieved to a low extent in informing students about loan application requirements. The study concludes that the majority of university students had limited awareness of loan application requirements, possessing knowledge only about a few specific aspects of loan application requirements. The study recommended that HESLB should conduct a comprehensive review of the loan eligibility criteria to address diverse concerns among university students.