The Higher Education Students’ Financing Board (HESFB) is set to receive additional funding for its student loan scheme, as a supplementary budget request is being processed. The move comes in response to concerns about funding shortfalls in the program’s operations.
During a plenary sitting on Tuesday, October 10, 2023, Deputy Speaker Thomas Tayebwa suggested that the Minister of Finance, Planning, and Economic Development, Hon. Matia Kasaija, utilize a three percent supplementary budget to address the funding gap of Shs13 billion. Out of the required Shs44.9 billion for the 2023/2024 financial year, only Shs31 billion is currently available for HESFB, which administers the student loan scheme.
Minister Kasaija confirmed the plan to submit a supplementary budget to Parliament at the appropriate time to rectify the funding shortfall.
However, Tayebwa expressed concerns about students being turned away from educational institutions due to loan defaults. He questioned whether institutions had been approached to prevent such actions, emphasizing the significance of prioritizing the loan scheme, which benefits students from regions like Karamoja.
Hon. Remigio Achia of Pian County praised the loan scheme for enabling youth nationwide to access quality education. Kumi District Woman Member of Parliament, Hon. Christine Apolot, urged the Ministry to allocate the full Shs44 billion required for the program, emphasizing the importance of education as a cornerstone for Uganda’s development.
Minister Kasaija agreed to provide the necessary funds as per the law’s three percent allocation.
The HESFB’s primary mission is to provide loans and scholarships to Ugandan students who qualify for accredited courses at recognized higher education institutions in Uganda but face financial constraints. In the financial year 2022/2023, the HESFB extended loans and scholarships to 625 students.
