Enhancing Student Loan Repayment through Effective Board Governance: Insights from Uganda’s Higher Education Student Loan Board

Abstract

This study investigates the influence of the roles of the Higher Education Students’ Loan Board (HESLB) on student loan recovery in Uganda, and the mediating effect of stakeholder compliance and institutional coordination. The research specifically aimed to (1) assess the extent to which HESLB board roles affect student loan recovery, and (2) examine how stakeholder compliance and institutional coordination mediate the relationship between board governance and loan repayment outcomes. A quantitative research design was adopted, employing a structured survey administered to loan beneficiaries, institutional representatives, and HESLB officials. A sample of 258 respondents was determined using stratified random sampling to ensure proportional representation across stakeholder categories. Data analysis involved hierarchical multiple regression to assess the direct effects of board roles on student loan recovery, and bootstrapped mediation analysis consistent with PROCESS-style methods to examine indirect effects through stakeholder compliance and institutional coordination. Factor analysis validated the measurement models. Findings indicate that HESLB board roles, including leadership, legal framework implementation, and networking, significantly predict student loan recovery. Hierarchical regression demonstrated that leadership had the strongest individual contribution, followed by legal framework enforcement and networking, collectively explaining a substantial proportion of variance in repayment outcomes. Bootstrapped mediation analysis revealed that stakeholder compliance and institutional coordination partially mediate this relationship, confirming that effective engagement, timely reporting, monitoring, and institutional cooperation amplify the impact of board governance on loan recovery. The study concludes that strengthening board governance and enhancing compliance and coordination mechanisms are critical to improving repayment rates. Based on these findings, actionable recommendations include leadership development programs for the board, stricter enforcement and communication of legal frameworks, robust monitoring and evaluation systems, and stakeholder engagement initiatives to support compliance. These measures provide a practical roadmap for HESLB and associated authorities to optimise student loan recovery and ensure the sustainability of higher education financing in Uganda.