Da Dona
JF-Expert Member
- Dec 16, 2025
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The government has expressed concern over the growing number of beneficiaries of Uganda’s student loan scheme who are failing to repay their loans, with officials revealing that more than half of eligible graduates are currently in default. The trend has raised fears about the sustainability of the revolving fund that is intended to support future students.
Officials from the Ministry of Education and Sports and the Higher Education Students Financing Board (HESFB) said thousands of former beneficiaries have either failed to begin repayment after the mandatory grace period or have stopped making payments altogether. As a result, loan recoveries remain far below expectations.
Since the scheme was launched in 2014, government has invested billions of shillings to support students pursuing higher education, particularly in science, technology, engineering and mathematics (STEM) programmes. More than 14,000 students have benefited from the initiative. However, recovery rates have remained low despite the increasing number of graduates expected to start repayment.
Education officials attribute the poor repayment record to unemployment among graduates, difficulties in tracing beneficiaries, and deliberate refusal by some former students to honour their obligations. The government has previously introduced measures requiring employers to help identify loan beneficiaries and facilitate deductions from salaries for loan repayment.
According to the loan scheme regulations, beneficiaries are expected to begin repayment after a 12-month grace period following completion of their studies. Repayment can be spread over a period equivalent to twice the duration of study, plus the grace period.
The Ministry of Education recently warned defaulters that they risk being publicly named if they fail to regularise their loan accounts within the stipulated period. Officials say stronger enforcement measures are necessary to protect the sustainability of the programme and ensure that future generations of needy students can continue accessing higher education financing.
Parliament has also raised concerns about the low recovery rates, noting that unless repayments improve, the government's ability to expand access to higher education through the loan scheme could be severely affected. Lawmakers have called for stronger tracking systems and stricter enforcement of repayment obligations.
Source: Daily Monitor UG
Officials from the Ministry of Education and Sports and the Higher Education Students Financing Board (HESFB) said thousands of former beneficiaries have either failed to begin repayment after the mandatory grace period or have stopped making payments altogether. As a result, loan recoveries remain far below expectations.
Since the scheme was launched in 2014, government has invested billions of shillings to support students pursuing higher education, particularly in science, technology, engineering and mathematics (STEM) programmes. More than 14,000 students have benefited from the initiative. However, recovery rates have remained low despite the increasing number of graduates expected to start repayment.
Education officials attribute the poor repayment record to unemployment among graduates, difficulties in tracing beneficiaries, and deliberate refusal by some former students to honour their obligations. The government has previously introduced measures requiring employers to help identify loan beneficiaries and facilitate deductions from salaries for loan repayment.
According to the loan scheme regulations, beneficiaries are expected to begin repayment after a 12-month grace period following completion of their studies. Repayment can be spread over a period equivalent to twice the duration of study, plus the grace period.
The Ministry of Education recently warned defaulters that they risk being publicly named if they fail to regularise their loan accounts within the stipulated period. Officials say stronger enforcement measures are necessary to protect the sustainability of the programme and ensure that future generations of needy students can continue accessing higher education financing.
Parliament has also raised concerns about the low recovery rates, noting that unless repayments improve, the government's ability to expand access to higher education through the loan scheme could be severely affected. Lawmakers have called for stronger tracking systems and stricter enforcement of repayment obligations.
Source: Daily Monitor UG
