If you borrowed money from the government to fund your university education, the clock is ticking — and the consequences of ignoring it just got a lot more serious.
At least 58% of the beneficiaries of the Higher Education Students’ Financing Board (HESFB), popularly known as the government Student Loan Scheme, are currently defaulting on their loans, according to a senior official in the Ministry of Education and Sports.
Mr Michael Wanyama, the HESFB executive director, revealed that only 42% of beneficiaries have so far complied with their repayment obligations — meaning the majority of those who benefited from the scheme are yet to honour their dues.
“Prove You Don’t Have Income”
For those who have completed their studies and fallen within the repayment window, Mr Wanyama had a direct message: pay up, or formally explain why you can’t.
“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,” he said.
He noted that beneficiaries are expected to begin repayment one year after graduation, and that those still facing genuine economic hardship should communicate with the relevant authorities rather than going silent. His sharpest concern, however, was directed at a particular group.
“There are those who are working and they are not making any payments,” he said.
The Numbers Behind the Scheme
Since its introduction in 2014, the Student Loan Scheme has supported more than 16,000 students across Uganda. The scheme started with fewer than 1,500 beneficiaries and has grown to 2,000 beneficiaries in the 2025/2026 academic year. About 2,048 students were enrolled this academic year, with an average of roughly 1,500 students taken on annually.
The programme is set to expand further. According to Ministry of Education spokesperson Dennis Mugimba, the scheme is projected to offer loans to about 2,500 new beneficiaries in 2026/2027, following an additional resource injection of Shs10 billion.
On cost, Mr Wanyama explained that the unit cost for most programmes averages Shs4.5 million per person per year, stretching to about Shs7.6 million annually depending on the course pursued.
Who the Scheme Is For
The loan scheme is designed to support academically strong but economically disadvantaged students to access higher education. It covers tuition, functional fees, research, and aids and appliances for persons with disabilities.
Its core focus is on selected undergraduate diploma and degree programmes in Science, Technology, Engineering and Mathematics (STEM), along with a few selected humanities programmes. Notably, students with disabilities are supported to pursue any course of their choice — whether in the sciences or humanities.
The Warning: Six Months, or Your Name Goes Public
The most significant development came in a legal notice published in the newspapers, reminding defaulters of their obligations under the Higher Education Students’ Financing Act (as Amended) and the terms of their loan agreements.
The notice cited Section 23(1) of the Act, which provides that a person who received a student loan must begin repaying it, with the specified interest, at least one year after completing the higher education for which the loan was given.
Signed by Dr Kedrace Turyagyenda, the Permanent Secretary in the Education Ministry, the notice stated that a number of beneficiaries have completed their studies, exhausted the statutory grace period, and become due for repayment — yet have failed to fulfil their obligations despite repeated reminders and engagements.
All beneficiaries due for repayment were advised to immediately regularise their loan status by updating their information and commencing or continuing repayment.
Then came the part that should concern every defaulter: beneficiaries who fail to comply within six months may — upon verification and where their repayment period has fully elapsed — have their names published in print and digital media, and be subjected to other lawful recovery measures.
What This Means for You
For thousands of graduates who benefited from the scheme, the message is unambiguous. The grace period is over, and the Ministry is no longer relying on gentle reminders. If you completed your studies, are earning an income, and have been quietly avoiding repayment, your window to act discreetly is closing fast.
For current and prospective beneficiaries, it’s also a reminder that the loan is exactly that — a loan, not a grant. Every shilling borrowed is expected back, with interest, to keep the scheme alive for the next generation of students who need it.
The advice from HESFB is simple: if you can pay, start now. If you genuinely can’t, say so. Silence is the one option that no longer works.
