What level of education does the loan cover?

The Scheme supports students intending to pursue selected undergraduate diploma and degree programmes in Science, Technology, Engineering and Mathematics (STEM) and a few selected humanity programmes. Persons with Disabilities (PwDs) are eligible to pursue any course either Sciences or Humanities

What does the Loan cover?

The Student Loan Scheme is a cost sharing initiative. The Loan covers the academic component, i.e., Tuition fees, Functional fees, Research fees, Aids and Appliances for Persons with Disabilities (PwDs). A loan may include specific amounts in respect of accommodation or meals where the Ministry determines that the funds are sufficient. Therefore, a student loan beneficiary is expected to cater for their welfare expenses (accommodation, feeding, medical care, scholastic materials) and any other expenses required by the student other than what the Ministry finances.

Where do I apply for the Student Loan?

Application is online through the Ministry of Education and Sports Website; www.education.go.ug. Applicants will be required to attach all the listed documents.

1. A copy of admission letter from any of the participating Universities or Other tertiary Institutions
2. A copy of the National ID
3. Copies of academic certificates or result slips and transcripts
4. A copy of a birth certificate
5. A copy of the recent passport photo
6. Proof of payment of the prescribed processing fees
7. A sketch map of applicant’s current address/residence
8. A sketch map of applicant’s home of origin (if different from current address)
9. Fully filled loan application form submitted online.

Note: Applicants will receive a notification upon successfully submitting the application.

Can one change the course of study or Higher Learning Institution?

This is possible. However, the Student must seek approval from the Institution and from the Permanent Secretary, Ministry of Education and Sports These changes attract fees as stipulated in the tariff guide.

Can a student access the Loan funds on their personal account

The loan amount is remitted directly to the Higher Education Institution on a semester basis upon submission of a Subsequent Loan Application Form (SLAF),and payment of Loan protection fee by the student. However, funds for aids and appliances applicable to PwDs may be deposited directly onto the beneficiary’s account.

  Can a student who has obtained the loan be disqualified?

A Student Loan beneficiary can be disqualified on the following grounds;

1. Falsification of document and information.
2. Failure to progress academically
3. Change of citizenship from being a Ugandan national
4. Conviction of a crime
5. Dismissal by the Higher Education Institution

Can one get a Loan and exit the Scheme during the time of study?

A beneficiary will be required to request for funding only when he/she needs it. A Student can also exit the Scheme if he/she acquires an alternative source of funding.

  What happens upon death of a Loan beneficiary?

In this case, the Permanent Secretary must be immediately notified of the death of the beneficiary accompanied by an authentic death certificate. The Ministry shall write off the outstanding loan amount against the Loan Protection Fund.  The family of the deceased shall be notified of the action taken by the Ministry.

What is the Loan Protection fee/ Fund?

Every Student loan beneficiary contributes 1% of the annual gross loan amount as Loan Protection Fee. This fund indemnifies the borrower against death and or permanent incapacitation. These funds are deposited on the following accounts;

LOAN PROTECTION FUND BANK ACCOUNTS

Does the student loan attract interest.

Every student loan is repayable with a value retention fee/ interest fee. The value retention fee is determined by the Minister of Education and Sports in consultation with the Minister responsible for Finance. Currently the value retention rate is 7% per annum charged on reducing balance.

 What is the loan repayment period?

The maximum repayment period is twice the study period in addition to the grace period of one year. There is also room to negotiate favorable repayment terms, including early repayments.

What are the Benefits of Early Loan Repayment?

Early Repayment comprises any amounts paid back to the Ministry during the period of study and before end of the Grace Period. Amounts paid within this period may not attract Loan Retention Fee/interest. This also facilitates a clean record with the Credit Reference Bureau.

What is the grace period?

According to the Higher Education Students Financing Act 2014, as amended,2024, the grace period is 12 calendar months after completing the study programme for which the loan was awarded.

 Is a Student required to pay back the Loan if they fail to complete the programme of Study?

All Loan beneficiaries are obliged to pay back all loan amounts advanced to them irrespective of failure to complete the course of study, except in the case of death or permanent incapacitation of the beneficiary.

 Is a student loan beneficiary allowed to acquire other financial support along the study period

A beneficiary will be required to request for funding only when he/she needs it. Upon acquisition of other financial support, he/she should inform the Ministry, Permanent Secretary who in turn will stop further funding. The Ministry will communicate the outstanding loan obligation to the beneficiary.

 Can the Government grant employment to the loan beneficiaries after study?

Government does not have designated jobs specifically for loan beneficiaries. The role of the Ministry is to enable students acquire knowledge and skills to compete for available opportunities both in the public and private sector. The Ministry will also continue to offer additional training in competences relevant in the labor market and enterprise development to prepare the learners for the world of work.

 What happens when a Loan beneficiary takes long to get a source of income or loses one?

Section 23(5) of the HESF Act as amended 2024, states that a person who has no income for the repayment of the student loan, shall within fourteen (14) days after receiving a notice under section (4) in the prescribed manner inform the Ministry accordingly and there after update the Ministry with information concerning his/her position after every three months. He/She will also negotiate a flexible repayment plan within their repayment period but must complete their loan repayment within the stipulated period.

Can a student work abroad after the study period?

Yes, however, to facilitate loan recovery, the beneficiary shall furnish the Ministry with a proper repayment plan.

Can a Loan Beneficiary acquire a bank loan while still repaying HESF loan?

 Yes, the student loan repayment installment shall not exceed 30% of the beneficiaries’ net pay but repayment of the student’s loan takes priority over all deductions save for taxes and other statutory deductions that shall be deducted before deducting any income of the beneficiary, for the repayment of the student loan. However, non-compliance with the student’s loan repayment may affect one’s credit worthiness with Commercial Banks in view of their credit ratings.

Can a loan beneficiary be supported to pursue further studies before completing repayment of the earlier loan?

The beneficiary is required to pay off the earlier loan before applying for a new loan.

Once a Loan beneficiary has fully paid off their previous loan, they stand an opportunity to apply for a new facility to enable them pursue further education opportunities.

How and where can I repay my loan?

The Ministry has clear channels through which one can repay their loan even if they are working outside Uganda. Payments can be channeled through Cash / cheque, Standing Order, Direct Debit, Electronic Transfers [EFT, RTGS], Telegraphic Transfer

Under section (4) of the Act, a beneficiary is required in a prescribed manner to inform the Board accordingly and there after update the Board with information concerning his/her position after every three months. He/she can also negotiate a flexible repayment plan within their repayment period but must complete their loan repayment within the stipulated period.