At least 58 percent of beneficiaries under Uganda’s government Student Loan Scheme have defaulted, according to the Higher Education Students’ Financing Board.
Mr Michael Wanyama, the HESFB executive director, said only 42 percent of beneficiaries have complied with repayment obligations.
“We are calling upon those who completed their studies and are within the repayment period to prove that they don’t have any gainful income, to start repaying back the loan,” Mr Wanyama said.
The Higher Education Student Financing Loan Scheme was introduced in 2014 to help academically strong but economically disadvantaged students access higher education.
Records show that more than 16,000 students have benefited from the scheme since its launch more than a decade ago.
Repayment Starts One Year After Graduation
Mr Wanyama said beneficiaries are expected to begin repaying their loans one year after completing their studies.
He said those facing economic difficulties should inform the responsible authorities instead of ignoring repayment obligations.
About 2,048 students have been enrolled on the scheme this academic year.
On average, the scheme enrolls about 1,500 students every academic year.
Loan Costs Vary by Course
Mr Wanyama said the average unit cost for most programmes is about Shs4.5m per student each year.
However, the cost can rise to about Shs7.6m per year depending on the course pursued.
“There are those who are working and they are not making any payments,” he said.
The scheme started with fewer than 1,500 beneficiaries. It has since grown to 2,000 beneficiaries in the 2025/2026 academic year.
Mr Dennis Mugimba, the spokesperson of the Ministry of Education and Sports, said the scheme is projected to support about 2,500 new beneficiaries in 2026/2027 following an additional Shs10b allocation.
Scheme Targets STEM and Selected Programmes
The Student Loan Scheme supports tuition, functional fees, research, aids and appliances for persons with disabilities.
It mainly targets students pursuing selected undergraduate diploma and degree programmes in science, technology, engineering and mathematics.
It also covers a few selected humanities programmes.
Students with disabilities can receive support to pursue any course, including science or humanities.
Defaulters Given Six Months
Mr Wanyama expressed concern over beneficiaries who have completed their studies but have not started repayment.
In a legal notice published in newspapers yesterday, defaulters were reminded to pay their dues in line with the Higher Education Students’ Financing Act, as amended, and the terms of their loan agreements.
The notice was signed by Dr Kedrace Turyagyenda, the permanent secretary in the Ministry of Education.
“In particular, Section 23(1) of the Act provides that, ‘a person who received a student loan shall start repaying the loan with the specified interest at least one year after completing the higher education for which the loan was given’”, the notice stated.
The ministry said its records show that some beneficiaries have completed their studies, exhausted the statutory grace period and become due for repayment.
It added that some have failed to meet their repayment obligations despite repeated reminders and engagements by the Higher Education Students Financing Scheme.
All beneficiaries whose loans are due for repayment have been advised to update their information and begin or continue repayment of their outstanding obligations.
The notice warned that beneficiaries who fail to comply within six months may face further action.
Upon verification, and where their repayment period has fully elapsed, their names may be published in print and digital media.
They may also face other lawful recovery measures.
