At least 58 percent of beneficiaries under the Higher Education Students’ Financing Board (HESFB) are reportedly not meeting their repayment obligations, a senior official from the education sector has revealed.
The Executive Director of HESFB, Michael Wanyama, said only about 42 percent of former students who accessed the government loan scheme are currently compliant with repayment terms.
“We are urging all graduates who are within the repayment window and are in employment or earning an income to begin servicing their loans. Those who are not yet financially stable should formally declare their status,” Wanyama said.
Official records show that more than 16,000 students have benefited from the student financing programme since its launch over a decade ago. The scheme, which was introduced in 2014, requires beneficiaries to begin repayment one year after completing their studies.
Wanyama noted that around 2,048 students have been approved under the scheme in the current academic year, with an annual average intake of about 1,500 students.
He further explained that the average cost per student stands at approximately Shs4.5 million per year, although this can rise to about Shs7.6 million depending on the course pursued.
“There are graduates who are employed but have not yet started making any repayments,” he added.
According to the Ministry of Education and Sports spokesperson, Dennis Mugimba, the programme has expanded from fewer than 1,500 beneficiaries at its inception to about 2,000 in the 2025/2026 academic year, and is expected to support around 2,500 new students in 2026/2027 following an additional Shs10 billion allocation.
The scheme targets academically qualified but financially disadvantaged students, covering tuition, functional fees, research costs, and support for students with disabilities. It prioritises science, technology, engineering, and mathematics (STEM) programmes, while also including selected humanities courses. Students with disabilities are eligible for support across all disciplines.
However, concerns persist over growing default rates. In a legal notice published in newspapers, defaulters were reminded to comply with repayment requirements under the Higher Education Students’ Financing Act (as amended).
The notice, signed by Permanent Secretary Kedrace Turyagyenda, stated that under Section 23(1) of the law, beneficiaries are required to begin repayment at least one year after completing their studies.
It further noted that several graduates have completed their grace period but have failed to begin repayment despite repeated reminders and follow-ups by the financing board.
Affected beneficiaries have been directed to update their records and start or continue repayment of outstanding balances immediately. The notice warned that those who fail to comply within six months risk having their names published in the media and facing additional lawful recovery actions.
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