education 23 June 2026 Daily Monitor (Uganda)
Student Loan Scheme Faces Widespread Default, Over Half of Beneficiaries Not Repaying
A significant majority of students who have benefited from Uganda's government loan scheme are failing to repay their loans, with over 58 percent in default. The Higher Education Students’ Financing Board (HESFB) is now urging alumni to settle their obligations. Source: https://www.monitor.co.ug/uganda/news/national/over-50-of-student-loan-scheme-beneficiaries-defaulting-govt-5505928
The Higher Education Students’ Financing Board (HESFB), commonly known as the government Student Loan Scheme, is grappling with a severe default crisis. According to Michael Wanyama, the HESFB executive director, a concerning 58 percent of beneficiaries have not commenced loan repayments after completing their studies, leaving only 42 percent in compliance.
“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 stated, emphasizing the need for beneficiaries to either begin repayment or provide evidence of unemployment.
Since its inception in 2014, the scheme has supported over 16,000 students pursuing undergraduate diploma and degree programs, primarily in Science, Technology, Engineering, and Mathematics (STEM), as well as selected humanities. The HESFB provides financing for tuition, functional fees, research, and aids for students with disabilities, with an average annual cost of Shs4.5 million per student, potentially reaching Shs7.6 million for certain courses.
Beneficiaries are expected to start repaying their loans one year after graduation. The Ministry of Education and Sports has issued a legal notice reminding defaulters of their obligations under the Higher Education Students’ Financing Act. The notice warns that individuals who fail to regularize their loan status within six months may face public naming and face further lawful recovery measures.