In a workshop held at Golf Course Hotel today (Thursday May, 9), the Higher Education Students’ Financing Board (HESFB) met with the Federation of Uganda Employers (FUE) to discuss ways of effective loan recovery from beneficiaries of the students’ loan scheme.
The workshop was officiated by the state Minister of Higher Education John Chrysestom Muyingo, who shared his message through Muzammil Mukwata Mpola (Assistant Commissioner for Higher Education) as his representative for this engagement.
While speaking at the workshop, HESFB’s Executive Director Michael O. Wanyama noted that he believes their collaboration with FUE will ensure that; all loans are collected by employers and remitted to HESFB, minimize non-performing loans, ensure sustainability of the fund, take action against loanees who fail to repay their loans among others.
Wanyama also clarified on the frequently asked questions by employers during a plenary session. While answering the question of “What happens to students on loan schemes dismissed or suspended from University because of misconduct?”, Wanyama noted that the loan has to be repaid regardless of such unfortunate events.
“A loan is a loan. We as Higher Education Students’ Financing Board institute ways/mechanisms of recovering back the borrowed money,” Wanyama assured. Wanyama also called upon employers to support the process of loan recovery and join in sensitising others.
He later revealed that the loan collecting burden has not been pushed to employers as many thought, but the board is instead trying to come up with ways of working with employers to effectively track and collect loans from the beneficiaries (students).
“The law provides that every student loan shall be repayable with interest. It also provides for early loan repayment for those students who are able in order to reduce the future loan obligation. In line with these provisions and throughout sensitization programmes, the board has been building a repayment culture by encouraging early repayments and this has yielded some positive results.” Wanyama said.
While speaking at the event, Mr. Muzamiru Mukwatampola (representing the State Minister for Higher Education) highlighted that the loans scheme is doing well so far and has supported many youth all over the country and with the support from relevant parties, the scheme will continue to grow.
He also submitted that thousands of students have so far benefited from this initiative which kicked off in the academic year 2014/15 and the state will continue to support more in a bid to ensure that more Ugandans attain higher education.
“Today government has supported over 8000 students in various institutions to pursue student loans in the studies of Science, technology and engineering.” Muzammil noted.
Also present at the workshop was Opio Douglas, the Executive Director FUE who encouraged employers to have an engaging discussion and go out as ambassadors of the loan recovery process.
According to Wanyama, the HESFB was established by an Act of Parliament aimed at facilitating easy loan recovery through establishing collaborations/networks with other stakeholders to enable easy tracking of the beneficiaries.
Among others, the loan scheme is aimed at increasing equitable access to Higher Education, supporting qualified students who can’t afford Higher Education, ensuring regional balance in Higher Education Services in Uganda as well as supporting courses which are critical to national development.
The loan scheme supports well and disabled students who pursue Diplomas, Undergraduate courses, Postgraduate Diplomas, Masters Programmes and PHDs.
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