Whenever universities in Uganda prepare for their intakes, financing higher education remains a significant challenge for many students. The cost of tuition, accommodation, and related expenses often exceeds what students and their families can afford. Fortunately, various financing options are available, including government-backed loans, scholarships, bank loans, and insurance policies.
Higher Education Students’ Financing Board (HESFB)
The Ugandan government established the Higher Education Students’ Financing Board (HESFB) to assist students unable to afford higher education. HESFB offers study loans for undergraduate and diploma courses at recognised institutions, covering tuition, functional fees, and upkeep stipends. To qualify, applicants must be Ugandan citizens, admitted to accredited institutions, and enrolled in priority programmes such as STEM fields. The application process involves completing an online or physical form and submitting documents such as admission letters and national identification. Selection is competitive, based on financial need, academic performance, and priority courses.
Beneficiaries sign contracts outlining repayment terms, starting one year after graduation. Dr Denis Mugimba, spokesperson at the Ministry of Education and Sports, says students have a grace period of twice their study duration plus one year for repayment. ‘If a student is studying medicine for five years, then the grace period is five times two, plus one year. This is equivalent to 11 years,’ he explains. Asked how they ensure compliance, Dr Mugimba says, ‘The data is shared with the Credit Reference Bureau (CRB). When there is non-payment, the defaulter will find it hard to ever borrow from any other financial institution in Uganda.’
Bank loan programmes
Several commercial banks in Uganda, including Centenary Bank, Stanbic Bank, and DfCU Bank, offer student loans requiring a guarantor, usually a parent or guardian. These loans cover tuition and other expenses, with varying interest rates and repayment terms. Students must provide proof of admission and, in some cases, collateral. Unlike government loans, bank loans may require immediate repayment, making them more suitable for families with steady incomes.
Scholarships
Scholarships are vital for academically gifted yet financially disadvantaged students. The Mastercard Foundation Scholars Programme supports bright, economically challenged students by covering tuition, accommodation, and personal expenses alongside leadership mentorship and training. Bernard Buteera, communication and web officer at Makerere University, notes, ‘Selection is highly competitive, and candidates must demonstrate academic excellence, leadership potential, and a commitment to giving back to their communities.’
Other notable scholarships include the Madhvani Foundation Scholarship, which targets students in specific disciplines, and programmes from the Chinese Embassy in Uganda and Chevening and Commonwealth Scholarships for Master’s degrees in the UK. However, Buteera highlights challenges, stating, ‘We select the neediest from the needier,’ and warns against forgery, urging applicants to use legitimate documents.
Education insurance policies
Education insurance policies provide a proactive approach to financing higher education, allowing parents to save systematically. Camila Mindru, marketing and communications manager at Jubilee Life Insurance Company, says ‘The policy helps parents plan early and cumulatively save for six or more years, depending on the agreement. These savings come with bonuses and once the policy matures, we pay them the lump sum. We also have an income drawdown policy where the parent can order that we pay a certain amount of money to the education institution periodically.’
To enrol in an education insurance scheme, parents select a suitable plan based on their financial capacity and expected future education costs. The insurance provider then invests the contributions, ensuring the policyholder receives a return on investment upon maturity. This financing option provides security and financial stability, reducing dependence on loans and external funding sources. She adds, ‘Our education plan comes with a life cover insurance policy. In case a parent passes away, we are to fulfil the obligation of paying for that child.’
Government sponsorship
The government sponsors about 4,000 students annually through various schemes, including the National Merit Scheme for top performers, the District Quota Scheme for regional representation, and support for sports and special needs students. Affirmative action policies, such as adding 1.5 points to female students’ admission scores, aim to increase female enrolment. Makerere University offers tuition waivers for girls under affirmative action, while the revised national policy on persons with disabilities promotes inclusion in education.
The challenge
Despite these options, access to student loans is limited by strict eligibility requirements and funding constraints. Many deserving students fail to secure scholarships due to competition, and bank loans are often inaccessible for low-income families. Also, education insurance requires long-term financial commitment, which can be challenging for families with irregular incomes.