4 - Student Loans in Kenya: Past Experiences, Current Hurdles, and Opportunities for the Future
Journal of Higher Education in Africa,
Vol. 2 No. 2 (2004): Journal of Higher Education in Africa
Abstract
Kenya has a long history of lending to students; but in the 1980s, the program was criticized for its poor administration, high costs, and low recovery rates. The estab- lishment of the Higher Education Loans Board in 1995 ushered in reforms that have broadened the program beyond the public universities to other postsecondary institutions and to some students in Kenya’s growing private sector and improved loan recoveries. This article describes these efforts to improve recoveries and makes a number of recommendations, including more realistic (i.e., higher) interest rates, more aggressive enforcement of loan recoveries, more effective targeting (i.e., means testing), and greater use of banks and other private capital sources. The use of student loans is an effective tool for increasing participation and equity, although the government must do more to improve the accessibility of secondary education, which is where much of the inequity currently resides.
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- Albrecht, D., & Ziderman, A. (1992). Student loans and their alternatives: Improv- ing the performance of deferred payment programs. Higher Education, 23(4), 357-374.
- Barr, N. (2001). The welfare state as piggy bank: Information, risk, uncertainty and the role of the state. Oxford, UK: Oxford University Press.
- Chapman, B. (1999). Reform of Ethiopian higher education financing: conceptual and policy issues. Mimeo. World Bank. Retrieved in 2001 from http://www.worldbank.orp-/education/economicsed/researcIVeconseries/ Chapman.htm.
- Jackson, R. (2002). The national student financial aid scheme of South Africa: How and why it works. Welsh Journal of Education, 11(1), 82-94.
- Chapman, B., & Ryan, C. (2002). Income-contingent financing of student charges for higher education: Assessing the Australian innovation. Welsh Journal of Education, 11(1), 64-81.
- Chuta, E. J. (1992). Student loans in Nigeria. Higher Education, 23(4), 443-49.
- Johnstone, D. B. (1986). Sharing the costs of higher education: Student financial assistance in the United Kingdom, the Federal Republic of Germany, France, Sweden, and the United States. New York: College Board.
- Johnstone, D. B., & Tekleselassie, A. A. (2001). The applicability for developing countries of income-contingent loans or graduate taxes, with special consider- ation of an Australian HECS type income-contingent loan program for Ethio- pia. Mimeo. Retrieved in 2001 from http://www.gse.buffalo.edu/org/ IntHigherEdFinance.
- Kajubi, W. S. (1992). Financing of higher education in Uganda. Higher Education, 23(4), 433-441.
- Mokgwathi, G. M. G. (1992). Financing higher education in Botswana. Higher Education, 23(4), 425-431.
- Kotey, N. (1992). Student loans in Ghana. Higher Education, 23(4), 451-459. Teferra, D., & Altbach, P. (2003). African higher education: An international ref- erence handbook. Bloomington: Indiana University Press.
- Williams, P. (1974). Lending for learning. Minerva, 12, 326-345. Woodhall, M. (1970). Student loans: A review of experience in Scandinavia and elsewhere. London: George Harrap.
- Woodhall, M. (1983). Student loans as a means of financing higher education: Lessons from international experience. World Bank Staff, Working Paper No. 599. Washington, DC: World Bank.
- Woodhall, M. (1987). Lending for learning: Designing a student loan programme for developing countries. London: Commonwealth Secretariat.
- Woodhall, M. (Ed.). (1989). Financial support for students: Grants, loans, or gradu- ate tax? London: Kogan Page, in association with the Institute of Education, University of London.
- Woodhall, M. (1991). Student loans in higher education [in] English-speaking Africa. Paris: International Institute for Educational Planning.
- Woodhall, M. (1992). Student loans in developing countries: Feasibility, experi- ence, and prospects for reform. Higher Education, 23(4), 347-356.
- Woodhall, M. (1994). Higher education: The lessons of experience. Washington DC: World Bank.
- Woodhall, M. (2002, July). (Guest editor of special issue). Paying for learning: The debate on student fees, grants and loans in international perspective. Welsh Journal of Education, 11(1).
- World Bank. (1986). Financing education in developing countries: An exploration of policy options. Washington DC: World Bank.
- World Bank. (1994). Higher Education: The lessons of experience. Washington, DC: World Bank.
- Ziderman, A., & Albrecht, D. (1995). Financing universities in developing coun- tries. London: Falmer Press.
References
Albrecht, D., & Ziderman, A. (1992). Student loans and their alternatives: Improv- ing the performance of deferred payment programs. Higher Education, 23(4), 357-374.
Barr, N. (2001). The welfare state as piggy bank: Information, risk, uncertainty and the role of the state. Oxford, UK: Oxford University Press.
Chapman, B. (1999). Reform of Ethiopian higher education financing: conceptual and policy issues. Mimeo. World Bank. Retrieved in 2001 from http://www.worldbank.orp-/education/economicsed/researcIVeconseries/ Chapman.htm.
Jackson, R. (2002). The national student financial aid scheme of South Africa: How and why it works. Welsh Journal of Education, 11(1), 82-94.
Chapman, B., & Ryan, C. (2002). Income-contingent financing of student charges for higher education: Assessing the Australian innovation. Welsh Journal of Education, 11(1), 64-81.
Chuta, E. J. (1992). Student loans in Nigeria. Higher Education, 23(4), 443-49.
Johnstone, D. B. (1986). Sharing the costs of higher education: Student financial assistance in the United Kingdom, the Federal Republic of Germany, France, Sweden, and the United States. New York: College Board.
Johnstone, D. B., & Tekleselassie, A. A. (2001). The applicability for developing countries of income-contingent loans or graduate taxes, with special consider- ation of an Australian HECS type income-contingent loan program for Ethio- pia. Mimeo. Retrieved in 2001 from http://www.gse.buffalo.edu/org/ IntHigherEdFinance.
Kajubi, W. S. (1992). Financing of higher education in Uganda. Higher Education, 23(4), 433-441.
Mokgwathi, G. M. G. (1992). Financing higher education in Botswana. Higher Education, 23(4), 425-431.
Kotey, N. (1992). Student loans in Ghana. Higher Education, 23(4), 451-459. Teferra, D., & Altbach, P. (2003). African higher education: An international ref- erence handbook. Bloomington: Indiana University Press.
Williams, P. (1974). Lending for learning. Minerva, 12, 326-345. Woodhall, M. (1970). Student loans: A review of experience in Scandinavia and elsewhere. London: George Harrap.
Woodhall, M. (1983). Student loans as a means of financing higher education: Lessons from international experience. World Bank Staff, Working Paper No. 599. Washington, DC: World Bank.
Woodhall, M. (1987). Lending for learning: Designing a student loan programme for developing countries. London: Commonwealth Secretariat.
Woodhall, M. (Ed.). (1989). Financial support for students: Grants, loans, or gradu- ate tax? London: Kogan Page, in association with the Institute of Education, University of London.
Woodhall, M. (1991). Student loans in higher education [in] English-speaking Africa. Paris: International Institute for Educational Planning.
Woodhall, M. (1992). Student loans in developing countries: Feasibility, experi- ence, and prospects for reform. Higher Education, 23(4), 347-356.
Woodhall, M. (1994). Higher education: The lessons of experience. Washington DC: World Bank.
Woodhall, M. (2002, July). (Guest editor of special issue). Paying for learning: The debate on student fees, grants and loans in international perspective. Welsh Journal of Education, 11(1).
World Bank. (1986). Financing education in developing countries: An exploration of policy options. Washington DC: World Bank.
World Bank. (1994). Higher Education: The lessons of experience. Washington, DC: World Bank.
Ziderman, A., & Albrecht, D. (1995). Financing universities in developing coun- tries. London: Falmer Press.