The loading for growth of HE finance has range from 1.00 to 0.98. The maximum loading is set to student benefit (1.0). It is due to the fact that interest charges are least for this category as compared to other commercial loans. The loadings for other challenges; unsubsidized loan (0.98), political pressure (0.94), private loan (0.89), and professional courses (0.94) show their contribution to this category of challenge.

The results total effect of confirmatory model (Table VI) show that credit worthiness challenges affects managers’ decision making (0.383). Subsidization of HE loan also affects managers’ decision making (0.159), and credit worthiness challenges (0.415). The reasons for borrowing also significantly affects managers’ decision making (0.794), credit worthiness challenges (-0.07), and subsidization of HE loan (-0.168). The bank policy on HE loan significantly affects managers decision making (1.011), and subsidization of HE loan (0.071). The growth of HE finance significantly affects credit worthiness (0.218) and reasons for borrowing (-0.112). Taken all the challenges together this model shall help managers to sanction loan for financing HE.

However, despite the statistical sophistication of confirmatory technique more was needed to understand the challenges associated with financing HE for better organizational performance. Here, it is pertinent to mention that in different stages of loan duration the stress level on the students and managers is different for different level of income. It shall be more interesting if challenges are correlated with income level, family background, and rural/urban divide.

During survey it was found that urban students are more aware of HE loan as compared to rural students.

Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

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