Education
Govt gives student loan defaulters six months to pay or face penalties
s.The ministry described the notice as a final warning and the last opportunity for affected beneficiaries to voluntarily regularise their loan status.
Pictured is education ministry permanent secretary Dr Kedrace Turyagyenda, who issued the legal notice. (New Vision file photo)
By: John Masaba, Journalist @New Vision
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Uganda's education ministry has issued a final six-month ultimatum to beneficiaries of the Government Student Loan Scheme who have defaulted on repayment, warning stern measures for those who fail to comply.
In a June 22, 2026, legal notice signed by permanent secretary Dr Kedrace Turyagyenda, the ministry reminded beneficiaries that student loans issued under the scheme are recoverable public funds and must be repaid in accordance with the law.
Under Section 23(1) of the Higher Education Students’ Financing Act, as amended, beneficiaries are required to begin repaying their loans, together with applicable interest, at least one year after completing their studies.
However, the ministry said records from the Higher Education Students Financing Scheme indicate that a number of beneficiaries have completed their studies, exhausted the grace period and failed to meet their repayment obligations despite repeated reminders and engagements.
The ministry described the notice as a final warning and the last opportunity for affected beneficiaries to voluntarily regularise their loan status.
Of the total beneficiaries, 11,709 have completed their studies and are currently in the loan repayment cycle, representing a loan portfolio valued at sh141.9 billion.
According to the ministry, the loans are repayable over a period ranging from four to 12 years.
Of those currently in the repayment cycle, only 1,471 beneficiaries have commenced repayment, enabling the government to recover approximately sh2.4 billion.
The student loan scheme has been running since the 2014/15 financial year.
The ministry described the notice as a final warning and the last opportunity for affected beneficiaries to voluntarily regularise their loan status.
Of the total beneficiaries, 11,709 have completed their studies and are currently in the loan repayment cycle, representing a loan portfolio valued at sh141.9 billion.
According to the ministry, the loans are repayable over a period ranging from four to 12 years.
Of those currently in the repayment cycle, only 1,471 beneficiaries have commenced repayment, enabling the government to recover approximately sh2.4 billion.
The student loan scheme has been running since the 2014/15 financial year.
Since its inception, a total of 18,501 beneficiaries — comprising 12,326 males and 6,175 females — have benefited from the programme. Of these, 15,427 were pursuing undergraduate degree programmes, while 3,074 were enrolled in undergraduate diploma programmes.
The scheme has also supported 179 persons with disabilities, including 136 males and 43 females, under its affirmative action framework.
“Take notice that all beneficiaries due for loan repayment are required to immediately regularise their loan status by updating their information and commencing or continuing repayment of their outstanding loan obligations,” the notice states.
The ministry warned that beneficiaries who fail to comply within six months will, upon verification, have their names published in print and digital media and be subjected to other lawful debt recovery measures.
It urged all affected beneficiaries to treat the matter with urgency by updating their details and settling their outstanding loan balances.
Find more details of this story in the New Vision edition of Wednesday, June 24, 2026.
The scheme has also supported 179 persons with disabilities, including 136 males and 43 females, under its affirmative action framework.
“Take notice that all beneficiaries due for loan repayment are required to immediately regularise their loan status by updating their information and commencing or continuing repayment of their outstanding loan obligations,” the notice states.
The ministry warned that beneficiaries who fail to comply within six months will, upon verification, have their names published in print and digital media and be subjected to other lawful debt recovery measures.
It urged all affected beneficiaries to treat the matter with urgency by updating their details and settling their outstanding loan balances.
Find more details of this story in the New Vision edition of Wednesday, June 24, 2026.