Student debt and academic performance: a quantitative analysis at the University of Cape Town

Ngobese, Lungelo Mthunzi

Student debt and academic performance: a quantitative analysis at the University of Cape Town

Thesis / Dissertation

2026

Publisher

University of Cape Town

Department

College of Accounting

Faculty

Faculty of Commerce

Abstract

Introduction: The presence of differential pass rates related to race, gender, socioeconomic background, and other contributing factors has marred the higher education landscape. Left unaddressed, these differential pass rates threaten students' throughput and the maximisation of their academic potential. Literature: Literature that explores the influence of these variables on academic performance presents contradictory views on the ability of some variables to affect academic outcomes, while providing unanimous perspectives on other variables' influence on academic performance. Examples of the former include the effects of gender, student debt and mental health on academic performance, while an example of the latter is the influence of race. Research aims: This study aimed to analyse whether there is an association between student debt and academic performance at the University of Cape Town (UCT). Additionally, this study sought to determine whether other observation-specific factors, alongside student debt, contribute to students' academic performance. The following research questions were posed: Is there an association between student debt and academic performance at UCT? Are there other observation-specific factors that contribute to students' academic performance at UCT? Methodology: Guided by Astin's (1993) Input-Environment-Output Model as the theoretical framework of the study, the research questions were answered quantitatively by collecting data at UCT from 2021 to 2023 (N = 88 626). The sample (n = 13 580) was subjected to a Pearson's correlation test, a multiple linear regression, and unpaired t-tests. Findings: The study revealed that at UCT, there is an association between student debt and academic performance with a weak correlation. Furthermore, the study identified that other input factors are also associated with academic performance. All findings were found to be statistically significant. Significance of the study: The results of this study are crucial for identifying the key factors that hinder students' academic performance, with the aim of developing targeted remedial interventions. This is particularly important in instances where large gaps in the grade-point average scores were observed. The study contributes to a renewed understanding of the influence of input factors on academic performance within the existing body of literature and offers novel insights into the impact of student debt on academic performance across a large sample. Limitation: The study was conducted at UCT (over one higher education institution (HEI)) which was purposefully selected by the researcher. Therefore, the results of the study are not generalisable to other HEIs.