The Ministry of Education and Sports has reported that it has received up to UGX. 78 million from the students who were given student loans in the previous financial year 2018/2019.
The recovery was communicated by the Uganda Higher Education Students Financing Board that is charged with giving the loans. The amount collected constitutes 52% of the total UGX. 150million that was loaned to the first cohort of the students that received the money.
Some of these students have completed their studies and are expected to start repaying the loan. According to the student loan policy, the loan money is to be starting a year after the date from which they completed their university school.
Applications for the academic year 2019/2020
The ministry is accepting applications for the academic year 2019/2010 which is being done through the online application system.
The government had budgeted to offer loans to about 3,000 students for the coming academic year, however, the ministry has now revealed that it cannot finance all those students.
It was revealed last week to the members of paliament that constitute the education committee, that the funds available can only sustain about 1,000 students only meaning the remainder 2,000 will not be able to get the loans. Those students have been advised to find alternatives of funding for their education.
Out of the UGX. 35billion that is required to finance the loans, the ministry has been able to raise only UGX. 27.5billion, and is in a deficit of UGX. 7.5billion.
