REPAYMENT BEHAVIOUR ON EDUCATIONAL LOAN BY GRADUATES
Ismawati Ibrahim
Kuppusamy Singaravelloo
DOI:
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Abstract
Access to higher education has been proven to enhance the quality of life of subsequent generations of citizens and raise the ability to develop the economy of the country. Education loans are essential in aiding tertiary students financially to access higher education institutions (HEIs). This study was carried out in late 2018 on graduates of University of Malaya (UM) to identify factors that influence their repayment of loans. The study was conducted using a quantitative approach, engaging 134 UM’s fresh graduates who participated through face-to-face administration of questionnaire and an online survey targeting the identified group during the convocation week. The findings show that the level of loan repayment intention among graduates stands at average. It was reported that more than half (60.4%) of the respondents have started paying educational loan, while the remaining have not commenced due to unemployment (21.1%), holding on to prescribed schedule of payment (18.4%), and exemption for first class graduates (15.8%). This study also shows behavior and reinforcement have significant relationship with loan repayment intention. In addition, reinforcement has partial mediating effect on the relationship between behavior and loan repayment intention. Therefore, it is recommended that education loan provider considers these factors for future implementation and policy change regarding loan repayment. This study should be tested in different areas and locations of HEIs nationwide to strengthen and validate the findings.
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