An Exploratory Study On The Factors Affecting Repayment Of Namibia Students Financial Assistance Fund (NSFAF) Loans

Abstract

The purpose of this research is to make an exploratory study on the factors effecting repayment of Namibia Students Financial Assistance Fund (NSFAF) loans. The NSFAF has been riddled with challenges and currently owed over N$400 million in student loans. The student beneficiaries have argued that they will not pay their loans back because the loans should be turned into grants. The beneficiaries’ argument was that they are already burdened with rentals, transport, food and increasing tuition fees. As such, any outstanding loans should be cancelled. These sentiments expressed by the students might be indicative of some of the reasons why it has been difficult for the NSFAF to recover some of the money it has loaned to students. In this study, the quantitative research approach was selected because of its construed merits and appropriateness. The merits are; quantitative research is used to execute systemic observations over the properties and correlations of the surveyed objects. It is a method which is important in analysing numerical data. The quantitative research is also vital for the objective of evaluating justice from the view point of the user. It is a tactic that is regularly used for research on policy and programme assessment. The tactic selected for the survey is appropriate for the evaluation of case studies. The quantitative research is vital for the study since it guided the researcher to evaluate the statistical perspective of the NSFAF case study. Participants highlighted that the state should amend the NSFAF Act of 2014. The new legislature should make it mandatory for students to pay back the loans by asking the employers to collaborate with NSFAF on verification since other alumni do not want to let the employers know that they benefited from the NSFAF. The ACT should make it compulsory for employers to disclose the students who have benefited from the NSFAF and deductions ensue in the form of garnishee from the salaries. NSFAF can also trace the students who benefited through the public service department and private sector. This can be accomplished through having staff members collaborating with these organisations. Sixty seven percent of the participants had cumulative siblings of greater than five, while 36.4% of the respondents had five siblings, and the remaining 15.9% had four siblings to look after. It is also recommended that a white paper should be crafted from the State which addresses the indebtedness of the alumni and the problems which they face when paying back the loan. A strategy to assist the students should be the mandate of the government. Considering the high unemployment rates, and the fact that most alumni are from poor backgrounds, there is a need to alleviate the plight of the students, Hence, the researcher recommends a no interest loan for the students.