Govt to launch students loan scheme

Sep 28, 2009

THE Government will launch a students’ tuition loan scheme next year.Finance minister Syda Bbumba said the scheme would help poor students access university education.

By Francis Kagolo

THE Government will launch a students’ tuition loan scheme next year.Finance minister Syda Bbumba said the scheme would help poor students access university education.

Under the loan scheme, which is also practised in other countries like Britain and US, the Government will pay fees for students, who will then pay back when they start working.

The details were contained in a speech read by privatisation state minister Rukia Chekamondo at the launching of the Kampala International University (KIU) students’ tuition fees loan scheme on Friday.

Public universities recently hiked their fees by about 40%.

There are over 100,000 students in the 27 universities in the country.

However, a number of them fail to graduate due to shortage of fees.

The education ministry first announced the loan scheme last year.

Bbumba said shortage of funds in the Government coffers and lack of logistics to manage the scheme had delayed its implementation.

However, KIU’s loan scheme differs from what Government plans to introduce.

To guard against defaulting, KIU vice-chancellor Prof. Muhammad Ndaula said the KIU loans would be given to students in the working class, and the parents or guardians of the non-working students.

The loans, provided by Orient Bank, attract a 24% interest rate per annum.

Orient Bank chief Maxwell Ibeanusi said repayments would be made in flexible installments.

KIU chancellor Justice George Kanyeihamba urged the students to use the loan scheme to achieve their academic goals.

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