Optimising student loan recovery in Malawi: Bridging policy gaps, socio-economic realities, and administrative...

In Malawi, where student loans are crucial for expanding access to higher education, poor loan recovery poses a significant threat to the sustainability of financing and socioeconomic development. The study investigates student loan recovery challenges at Malawi's Higher Education Student Loans and Grants Board (HESLGB), where rigid salary deductions result in a 32.6% non-repayment rate. A mixed-methods approach, grounded in behavioural economics, analyses survey data from 289 borrowers and interviews with 12 staff. Four themes, including enforcement mechanisms, borrower support systems, repayment schedules, and penalties, highlight barriers linked to a 70% informal workforce and administrative gaps. Unemployment, rigid schedules, and poor tracking impede recovery. We propose income-contingent repayment plans, digital platforms, borrower education, and policy reforms, drawing on regional models to offer scalable solutions for low- and middle-income countries.