The Ministry of Education and Sports has issued a final six-month ultimatum to beneficiaries of the government student loan scheme who have defaulted on repayment, warning of strict measures against those who fail to comply.
The directive targets former students who benefited from government funding under the student loan scheme but have not begun or completed repayment as required under the programme’s terms.
Signed by the Permanent Secretary, Dr. Kedrace Turyagyenda, the notice describes the directive as a final warning and the last opportunity for borrowers to comply voluntarily before enforcement begins
According to the Ministry, defaulters are being given a final opportunity to regularise their repayment status within six months, after which enforcement measures will be taken against those who remain non-compliant.
Officials indicated that the government intends to strengthen recovery of public funds invested in higher education through the scheme.
However, officials have consistently struggled to meet the growing demand for student loans. Each year, the scheme receives more than 6,000 applications but has only been able to support about 1,500 students, making loan recoveries from past beneficiaries critical to financing future applicants.
The repayment notice comes as many graduates continue to face limited employment opportunities. According to the Uganda Bureau of Statistics, graduate unemployment stands at 15.2%, although some labour market analysts believe the actual figure could be significantly higher.
The student loan programme was introduced to expand access to higher education for financially disadvantaged students, with repayment expected once beneficiaries complete their studies and enter employment.
Education officials say improved repayment compliance is critical to sustaining the revolving nature of the fund and enabling future students to benefit from the programme.
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