Behavioral Factors Influencing Students’ Loan Repayment in Tanzania

This study examined behavioral factors influencing student loan repaymentamong beneficiaries in Tanzania using a cross-sectional survey of 324respondents. Findings revealed that 65% of respondents indicated a mediumlikelihood of timely repayment if their income increased, while actual repaymentbehavior was mostly rated as medium (61%), with only a small percentagemaking high repayments. Although 65% acknowledged the importance of timelyrepayment, prioritization of loan payments relative to other expenses wasgenerally low to medium. Guided by behaviorism theory, the study highlights adisconnect between awareness of repayment importance and actual repaymentbehavior, suggesting weak environmental reinforcement of repayment habits.The study recommends strengthening incentives and penalties, improvingfinancial literacy, and adopting flexible repayment plans to enhance loanrepayment rates and sustainability of student loan schemes in Tanzania.