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Supplementary Funding Request in Progress for Higher Education Students’ Loan Scheme

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supplementary funding request in progress for higher education students loan scheme
supplementary funding request in progress for higher education students loan scheme
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Students pursuing higher education in Uganda may soon benefit from increased financial support as a supplementary budget request is being prepared to address funding shortfalls in the Higher Education Students’ Financing Board (HESFB) loan scheme.

On October 10, 2023, during a parliamentary session, Deputy Speaker Thomas Tayebwa advised Finance Minister Hon. Matia Kasaija to utilize the available three percent supplementary budget to cover a deficit of Shs13 billion affecting the loan scheme’s operations.

Out of the required Shs44.9 billion for the 2023/2024 fiscal year, only Shs31 billion is currently accessible for HESFB, which administers the student loan program.

Minister Kasaija acknowledged the funding gap and stated, “To address the issue of funding shortfalls, we are organizing a supplementary budget to be submitted to this House at an appropriate time.”

Deputy Speaker Tayebwa expressed concern about students facing expulsion from educational institutions due to loan default and urged the government to intervene with the required funds to avoid such situations.

Hon. Remigio Achia of Pian County emphasized the positive impact of the loan scheme, particularly in enabling students across the country to access quality education.

In addition, Kumi District Woman Member of Parliament, Hon. Christine Apolot, stressed the importance of prioritizing education, calling for full financial support for the student loan scheme.

Finance Minister Kasaija affirmed the commitment of the ministry to provide the necessary funds, as mandated by the law, using the available three percent supplementary budget.

The HESFB’s primary objective is to offer loans and scholarships to Ugandan students qualified for accredited courses in recognized higher education institutions who lack the financial means to support themselves.

In the 2022/2023 Financial Year, HESFB extended loans and scholarships to 625 students, according to Minister Kasaija.