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Many studies conducted on the Higher Education Students Loans Board (HESLB) have mostly concentrated on its success, sustainability and effectiveness on loans issuance and repayment. None had focused on its performance towards human capital investment. This study sought to explain and analyze HESLB’s performance in human capital investment, which in this study has been operationalized as financing of higher education. The study retraced the development of Higher education financing from early days of independence in Tanzania to the inception and operationalization of the HESLB. Data were collected, analyzed and interpreted with view to answering research questions on the performance of the HESLB. It was concluded that despite the increasing budgeting trend in favour of the loans board, its ability to sustain itself through education loan repayment was still minimal, which can be interpreted as HESLB’s little contribution to human capital investment. It was suggested the financing strategy of higher education in Tanzania for sustainable human capital investment be re-analyzed to ensure economic growth and development of the country.

Performance of the Higher Education Students Loans Board in Human Capital Investment from 2005-2015