More students get study loans

More students from universities and other tertiary institutions across the country have been awarded study loans for the 2021/2022 academic year, compared to the previous years.

Releasing the first cohort of the beneficiaries at Uganda Media Centre on Monday, the Executive Director for Higher Education Students’ Financing Board (HESFB), Mr Michael Wanyama, said a total of 1,735 students will benefit from the loans this year.

This shows an increment of 622 students from 1,113 in the 2020/2021 academic year to 1,734 this year.
“Parliament released more funds amounting to Shs6 billion to be utilised by undergraduate, diploma and continuing students. This has helped us to admit more students although more funding is needed to cater for the high demand of applicants,” Mr Wanyama said.

The board released the first batch of beneficiaries totalling 920 students out of the expected beneficiaries totalling 1,734 students.

Mr Wanyama said 4,797 students applied for the study loans in the first cohort from 16 universities (12 chartered private and four public universities). This means that a total of 3,877 applicants have missed the loans due to inadequate funds. 

“The first cohort has a success rate of 20 percent of the applications received. These will utilise Shs3.8b out of the total released budget, ”Mr Wanyama said.

A total of 120 of 920 beneficiaries in the first batch are in the final year. This is the first time the board is awarding study loans to continuing students after Parliament approved extra Shs500m to cater for their tuition.

A total of 735   undergraduate Degree students while 65 are pursuing undergraduate diplomas under the Science Technology Engineering and Math programmes. The second batch of students totalling 815 will be released next month. These are from universities and other tertiary institutions, including Makerere and Kyambogo universities that failed to beat the November deadline.

The board called for the application of the 8th Cohort under the Students’ Loan Scheme on October 11 ,2021 and the deadline was November 30.

However, only four public universities (Muni, Mbarara University of Science and Technology, Kabale and Busitema) and all the 14 private chartered universities had completed the admission processes. 

The Private Chartered Universities such as African Bible University, Bishop Stuart, Bugema, ISBAT, and Islamic University in Uganda, Kampala International University, Kampala University, and Mountains of the Moon University, Ndejje University, Nkumba University, Uganda Christian University and Uganda Martyrs University had not completed the admission process.

The board then extended the loan application period for the five public universities (Makerere, Kyambogo, Soroti, Lira, and Gulu universities) and the other tertiary institutions.

The Minister for Higher Education, Mr John Chrysostom Muyingo, said: “The board extended the deadline for receipt of the Loan Applications for Public universities and other tertiary institutions to January 15 to ensure that all interested students are given an opportunity to apply for the loan facility.”

Mr Muyingo said the board will this year handle the Loan Award selection process in a phased manner because of the staggered admissions by the higher learning Institutions.

The board received applicants from all districts except from Kaabong and Buvuma districts. 

The Board has offered loans to 20 students with disabilities female (four) and male (16) and these learners, unlike their colleagues, are allowed to pursue degrees or diplomas in both Science and Humanities programmes. 

The students are given a one-year grace period after school and double the years of study before one starts paying his or her loan. This means that a person who was pursuing a course of five years is given 11 years to repay the loans.
Since 2014, more than 12,000 have been supported by study loans with more than 3,500 passed out.

“It is possible to repay the loans as demonstrated by the 26 beneficiary students who have completed repayment of the loan ahead of the repayment schedule. I do encourage all the loan beneficiaries with due loans to pay back timely in order to create a revolving fund and create opportunity for others,” Mr Muyingo said.