Abstract:
This study aimed to evaluate the effectiveness of digital disbursement systems in
managing student loans among higher learning institutions, focusing on Kilimanjaro
Christian Medical University College (KCMUCo). The study specifically sought to
assess the perceived ease of use, usefulness, cost dynamics, and challenges associated
with the digital disbursement system. Using a mixed-methods approach, both
quantitative data from 234 students and qualitative insights from eight finance staff
were analyzed to provide a comprehensive understanding of the system's performance.
The findings revealed that the digital disbursement system was perceived as more
effective compared to traditional manual methods. Most students found the system
easy to navigate, although challenges such as occasional downtimes and content
upload difficulties were noted. The system's usefulness was highlighted, particularly
in terms of efficiency and reducing manual errors, although improvements in
transparency and communication were suggested. In terms of cost dynamics, the
system significantly reduced administrative costs associated with loan management,
though students in remote areas faced additional internet access costs. Key challenges
included technical issues, limited access to support, and internet connectivity, which
affected some users. The study concluded that while the digital disbursement system
is a major improvement over manual processes, further enhancements are needed to
address the system’s occasional downtimes, internet connectivity issues, and to
improve overall user support. Recommendations include improving training for
students and staff, enhancing transparency in loan disbursement processes, and
addressing infrastructure challenges, particularly for students in remote areas. The
findings underscore the importance of continuous system improvements to maximize
the benefits of digital platforms in higher education loan management
