The Uganda government has revealed a significant surge in demand for student loans, with applications increasing by 48.9% in a single year. The Ministry of Education and Sports received 10,615 applications for the 2026/27 academic year, up from 7,125 the previous year. This surge highlights the growing financial challenges faced by Ugandan families in accessing higher education. With tuition fees far outpacing average household incomes, many families rely on government loans to support their children's education.
Despite the high demand, only 2,790 students were selected to receive funding under the 2026/27 Higher Education Students' Financing Scheme (HESFS). The scheme's financial ceiling meant that nearly two out of every three qualified, needy applicants were left behind. A total of 8,005 applicants were fully eligible for support, but 5,215 young Ugandans missed out on funding. The ministry deployed a three-tier socio-economic selection model to decide who received funding from the allocated Shs 10.72 billion budget.
The selection model allocated 30% of slots equally across district quotas, another 30% based on districts' total share of eligible applicants, and the remaining 40% strictly for the most vulnerable candidates. The scheme successfully directed loans to historically underserved border areas, including Amudat, Buvuma, Kalangala, Karenga, Kotido, and Moroto. An automated scorecard evaluating household wealth, academic results, and geographic isolation was used to allocate funds.
Female students earned 1,400 of the 2,790 available loans, while 1,390 went to male applicants. Additionally, 64 students living with disabilities secured loans covering tuition and specialized learning aids. The scheme remains restricted to science, technology, engineering, and mathematics (STEM) fields, along with tourism and hospitality management, programmes where annual tuition does not exceed the government ceiling of Shs 7.6 million.
The most popular programmes among beneficiaries included Bachelor of Science with Education, engineering, computer science, and health care management. The ministry stretched its original target of 2,400 beneficiaries to 2,790 because many successful applicants enrolled in diploma courses and lower-cost degree programmes. Funds will not be handed to students directly; instead, tuition and operational fees will be disbursed straight to the 33 participating public and private chartered universities and tertiary institutions.
However, the release revealed that bureaucratic errors hindered many applicants, with 2,610 applications rejected outright as ineligible. More than half of these cases, 1,452, failed due to incomplete files or missed required documentation. Another 279 applied for unapproved humanities courses, while 87 were continuing students who ignored the rule limiting loans strictly to first-year enrollments.
The ministry is currently sending SMS alerts, and successful students must sign official loan agreements before the ministry releases funds. The loan scheme was designed to ensure no bright Ugandan is denied a career due to poverty. However, with applications approaching 11,000 against a budget that covers less than 2,800, the scheme faces a fundamental question: Without a substantial boost in national funding, can government loans keep pace with a generation fighting for a place in the modern economy?
Key points
- Demand for student loans in Uganda surged by 48.9% in a single year.
- Only 2,790 students received funding out of 10,615 applications.
- The scheme faces a funding challenge, with a budget that covers less than 2,800 students.
