EFFECTIVENESS OF DIGITAL DISBURSEMENT SYSTEMS IN MANAGING STUDENT LOANS AMONG HIGHER LEARNING INSTITUTIONS

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