Muyingo urges increased funding for students loan scheme

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The state minister for higher education, John Chrysestom Muyingo, has called for increased funding for the students loan scheme.

He made the call on Wednesday (October 29) while presenting a report to Parliament on the 2025/2026 Higher Education Students’ Loan Scheme.

He said 2,047 students, representing 28.8% of the 7,125 applications received, have been awarded loans to pursue higher education in Uganda, following reforms to streamline student financing under the education ministry.

The loans cover tuition, functional and research fees, and for students with disabilities, aids and appliances.

Applications for the 2025/2026 academic year opened on June 15, with an initial deadline of July 31, later extended for Other Tertiary Institutions (OTIs) and the Uganda National Institute for Teacher Education (UNITE) until August 15 to accommodate late admission letters.

Applications were exclusively online via the Integrated Loan Management Information System (ILMIS) to enable convenience, speed, and accuracy.

A total of 7,125 applications were received, a 10% increase from the 6,661 applications in 2024/2025. Of these, 5,920 were for undergraduate degrees and 1,205 for diploma courses. 

Out of the successful applicants, 1,196 (58%) are male and 861 (42%) female, a notable increase attributed to affirmative action, which awarded extra points to female applicants.

Education remains the most supported discipline, with 513 beneficiaries, followed by engineering with 440. The loan scheme also prioritised students with disabilities, awarding 45 loans (36 males and nine females), up from 29 last year.

Loan eligibility criteria included Ugandan citizenship, admission to accredited courses and institutions, and assessment based on district quotas, gender, socio-economic status, and equity. 

The ministry adopted a three-part selection model: 60% based on district quotas, equally or proportionally allocated, and 40% based on socio-economic vulnerability using a proxy means test. All districts, including historically low-participation regions such as Amudat, Moroto, and Kalangala, had qualifying beneficiaries this year.

Funds are disbursed directly to institutions rather than students. 

The first-year student loan budget of sh7.93 billion, originally earmarked for 1,500 students, was stretched to fund all 2,047 eligible applicants due to lower costs for programmes such as BSc in Education.

Muyingo urged Parliament to consider increasing allocations for student loans to meet the growing demand, as only 28% of applicants were successful this year.

MP Christine Kaaya Nakimwero (Kiboga) highlighted challenges related to regional balance in the student loan scheme, saying some students may lack access to digital technology, preventing them from learning about the programme.

“Vulnerable students have no access to information. District officials should obtain the information and provide it to disadvantaged students, supporting them accordingly," she said.

Legislator Dr George Didi Bhoka (Obongi County) asked what measures were in place to assist districts without internet or electricity. “The sons of the poor should be the primary beneficiaries of the student loan scheme."

MP Patrick Nyanzi of Butembe County proposed introducing quotas for scholarships from State House to ensure equity among districts.

Butambala County MP Muwanga Kivumbi said that despite the growing student population, the government sponsors only about 4,000 students across universities. He argued that the government should aim to sponsor at least one student per parish, noting that Uganda has approximately 10,717 parishes. Kivumbi decried the practice of families selling land to pay school fees, which exacerbates poverty.

Deputy Speaker Thomas Tayebwa, who chaired the session, asked how vulnerable students are verified to ensure that loans reach the intended beneficiaries. He said some families are reluctant to take loans, which discourages participation, and referred the issue to the Committee on Education and Sports.

Dr Kenneth Omona, the state minister for Northern Uganda, stressed that districts producing fewer students require affirmative action and should be offered courses aligned with modern life skills. 

He called for increased funding to support a greater number of students.