Regional bias frustrates Uganda’s student loan scheme

Parliament has urged the Ministry of Education and Sports to review the Higher Education Students’ Financing Scheme (HESFS) to address regional imbalance, digital exclusion, and limited access for vulnerable learners.

On Wednesday, October 29, the Minister of State for Higher Education, John Chrysostom Muyingo, told Parliament that only 2,047 out of 7,125 applicants were approved for study loans under the 2025/2026 academic year.

“The demand for student loans has exponentially increased, outpacing available resources. There is therefore need for Parliament to allocate more funds,” Muyingo said.

He added that 1,196 beneficiaries are male, 861 are female, and 45 students with disabilities received support, up from 29 the previous year.

He explained that loans were allocated using a district quota system (60 percent) and socio-economic vulnerability (40 percent) to ensure fairness.

However, several MPs criticised the scheme’s implementation, saying it still favours certain regions and urban applicants with better internet access.

Kiboga District Woman MP, Christine Nakimwero, questioned whether the scheme’s affirmative action goals were being achieved.

“The affirmative benefit was on regional balance, not on sex. The biggest challenge is ensuring equal representation of regions, which is not coming out clearly,” she said.

Nakimwero urged the ministry to improve communication, noting that online applications disadvantage rural students.

“There should be better sharing of adverts through district officers because online applications are hard for vulnerable students without equipment or internet access,” she added.

Obongi County MP, George Boka Didi, cited historical marginalisation in regions like Karamoja, Acholi, Lango, West Nile, and Bukedi.

“When it comes to loan financing, I see more opportunities going to districts that already perform well under ordinary sponsorships. What affirmative action applies to districts like Obongi that lack electricity?” he asked.

Kimaanya–Kabonera Division MP, Abed Bwanika, questioned the link between higher education funding and national manpower needs.

“How do we choose our priorities? We lack health workers and engineers. This loan should help government close those gaps if we have done a needs assessment,” he said.

Butemba County MP, Bingi Patrick Nyanzi, called on government to expand the number of beneficiaries and integrate State House scholarships into a district quota system for fairness.

Butambala County MP, Muhammad Kivumbi, criticised the government’s failure to increase the number of sponsored students for decades.

“It has maintained a paltry 4,000 students across universities. People are selling land to pay fees. Are you comfortable that for 40 years, you have maintained 4,000 students per year?” he asked.

Presiding over the sitting, Deputy Speaker Thomas Tayebwa noted that fear of debt remains a cultural barrier in some communities.

“When some people hear about student loans, they get scared and fail to apply. You cannot get a loan on behalf of the family,” he said.

Tayebwa directed the Committee on Education and Sports to study the minister’s statement and report back with recommendations on fair distribution of the scheme.