Behavioural determinants of education financing decisions and their impact on graduation outcomes for sustainable repayment

Abstract

This study examines the behavioural factors influencing students’ decisions to take education financing and how these decisions affect graduation outcomes to secure long-term financing repayment sustainability. Anchored in the Theory of Planned Behaviour, the research explores how attitude, subjective norm, and perceived behavioural control contribute to financial decision-making among university students in Malaysia. The study aims to explore the psychological drivers behind borrowing intentions and their implications for higher education financing systems. A quantitative approach was employed, utilising a structured questionnaire distributed to 108 graduates from Malaysian public and private universities. Responses were analysed using SPSS software through Pearson correlation and multiple regression techniques. The findings reveal that attitude and perceived behavioural control are significant predictors of informed financial decision-making, while subjective norm has a weaker, statistically insignificant effect. Furthermore, strong decision-making capability is positively associated with graduation success, suggesting that financial choices made at the outset of tertiary education influence academic persistence and outcomes. The results highlight the importance of enhancing financial literacy, building students’ confidence in managing financial decision responsibilities, and reducing psychological and informational barriers to education financing. It adds value by connecting financial decision-making to graduation outcomes, a less explored nexus in the Malaysian context. This research contributes to a deeper understanding of the behavioural dynamics that shape education financing decisions and offers practical recommendations for policymakers, financial institutions, and educational bodies seeking to reduce financing default rates and improve graduation outcomes. The insights gained support efforts to build a more sustainable and student-centred higher education financing framework.