Finance Minister to Address Funding Shortfall for Student Loan Program

Deputy Speaker Thomas Tayebwa advised the Minister of Finance, Planning, and Economic Development, Hon. Matia Kasaija, to utilize a three percent supplementary budget to address a funding shortfall of Shs13 billion for the Higher Education Students’ Financing Board (HESFB).

Kasaija informed the assembly that, out of the Shs44.9 billion needed to finance HESFB in the 2023/2024 fiscal year, only Shs31 billion is currently available. HESFB is responsible for implementing the student loan scheme in Uganda.

To rectify this funding gap, Kasaija mentioned that the government is in the process of preparing a supplementary budget, which will be presented to the House at a later date.

Deputy Speaker Thomas Tayebwa raised concerns about students facing expulsion from educational institutions due to non-payment and questioned whether the government had communicated with these institutions to prevent student dismissals.

He emphasized the importance of prioritizing the loan scheme, noting that it has provided opportunities for students, including those from remote regions like Karamoja, to access higher education.

Other Members of Parliament also voiced their support for the loan scheme. Hon. Remigio Achia called for affirmative action in favor of the program, highlighting its significance in providing quality education to young people nationwide. Kumi District Woman Member of Parliament, Hon. Christine Apolot, urged the ministry to allocate the full Shs44 billion required to support the student loan program, emphasizing the pivotal role of education in Uganda’s development.

In response to these concerns, Kasaija committed to providing the necessary funds through the three percent supplementary budget as mandated by law.

The Higher Education Students’ Financing Board is tasked with providing loans and scholarships to Ugandan students who meet the qualifications to pursue accredited courses or programs in recognized higher education institutions in Uganda but face financial limitations.

In the previous fiscal year (2022/2023), HESFB extended loans and scholarships to 625 students, demonstrating its impact on enabling access to higher education for many deserving individuals in Uganda.