Integrative model of students' attitude to educational loan repayment A structural modelling approach

Purpose - The purpose of this paper is to measure the antecedents of students' attitude and the impact of students' attitude on the intention to repay study loans. Design/methodology/approach - Primary data from 428 students in universities in Malaysia are collected and six constructs from theory are identified: perceptions that loan repayment will affect the quality of life after graduation; awareness of loan repayment issues created by media; perceptions towards loan agreement; parental influence; students' attitude towards loan repayment; and intention to repay loan. Structural equation modelling approach is adopted to analyze the data. Findings - Constructs of parental influence and perceptions that loan repayment will affect the quality of life after graduation are found to have a direct relationship with students' attitude towards loan repayment; perceptions towards loan agreement is found to influence belief that loan repayment will affect the quality of life after graduation; and awareness of loan repayment issues created by media is found to affect parental influence. The relationship between students' attitude and intention is found to be statistically positive and significant. Research limitations/implications - The study has been conducted in aggregate form. Future studies could account for ethnic, gender, and regional differences. Practical implications - The primary users of the results of this study would be the countries that provide education loans, and keen to cut down on student loan defaults. Originality/value - The study is first of its kind to approach the issue of student loan defaults in a multi-method manner and develop a comprehensive theoretical model that can be put to empirical test by future researchers.