President Museveni yesterday warned that government will arrest students who will default in paying back loans acquired under the students’ loan scheme.
The President was speaking at the launch of the scheme at Kyambogo University where he drove an ethanol powered car, an innovation by the university community.
The scheme is intended to enable students from poor background to access higher education using money borrowed from government.
However, they will be expected to repay the loans on completion or risk a fine not exceeding 50 currency points (Shs1m) or imprisonment of six months, according to the law.
He said State House scholarships which have been consuming Shs30b annually will be phased out and the money channeled to the scheme.
“We want to phase that out State House scholarships. We shall initially start with scientists and Arts should wait a little bit. When the money finally grows, we shall consider Arts. This is the apex of our education funding plan,” Mr Museveni said.
Source: Daily Monitor
