WHAT YOU DIDN’T KNOW ABOUT HESFB A BODY INCHARGE OF STUDENT LOANS

By Luyombya Marvin

The rate of school dropouts all over the world is alarming and keeps increasing over time with 2.2 million annual drop out as of September 5th,2022 according to UNESCO.

In Uganda the drop out rate differs per level with the highest being 57.5% of students in advanced level followed by 18% pupils in primary with different factors prompting the giving up then 36.7% in lower secondary figures that total up to millions of student don’t get to finish their academic journey.


This continuously raising numbers pushed the government to come up with the parliamentary higher education students financial board (the higher Education Students’ financing Act, No.2 of 2014.),
with the aim of availing loans for students who have completed upper secondary and lack funds to take them through the tertiary level.

In the last 10years HESFB has partnered with over 22 Universities and 36 other institutions to support 13,405 beneficiaries, 9198 of these are male and
4207 female .

The government has extended the budget of the loan scheme up to over 18 billion in the 2022/2023 financial year, the loan scheme is set for all Ugandans leaving both at home and abroad as long as
one has been admitted to a private charted University, Public University or listed other Tertiary Institutions in Uganda accredited by the National Council for Higher Education (NCHE). The applicant
must be pursuing any of HESFB’s approved under affirmative Action.

The ongoing scheme was halted on 9th July, 2023 after an announcement made by Michael Wanyama the executive director of HESFB, “ The HESFB informs the public that the board will not receive applications for study loans to the Academic Year” in his own words, the board will continue
to facilitate in-study loan scheme beneficiaries while engaging all stakeholders in resource mobilization to resume supporting the new cohort of student loans in the financial year 2024/2025” he added a conclusion zeroed downed to after the COCASE meeting this all happened before the parliamentary sitting on the 10th oct, 2023 were Deputy Speaker Thomas Tayebwa guided the
Minister of Finance, Planning and Economic Development Hon. Matia Kasaija, to take advantage of the three percent supplementary budget to cover the shortfall of 13billion shillings.

The students are being chased out of school and the new ones are not being admitted have you
reached out to institutions to say don’t chase our students we are going to give the money?”
Tayebwa asked.

THE LAW.
Section 20 of the higher Education higher education financing act states that: (1) The scheme is only
for Ugandan students seeking financial assistance to pursue an accredited course of study or
program of education in an accredited institution of higher learning recognized by the National
council for higher Education. (2) In
determining the eligibility into the scheme, the board shall take into consideration the following:
(a) regional balance
(b) gender
(c) Socio economic needs and
(d) equity.
(3) the board may, by notice in the gazette and newspaper of wide national coverage, declare the
programs or courses of study referred to be funded in a particular academic year.
(4)In determining the programs or courses of study referred to in subsection (2), the board shall take
into account government policy regarding higher education

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