Paying for university in Uganda with the public HESFB loan
In Uganda, the public student loan is granted by the Higher Education Students Financing Board to citizens admitted to degree or diploma courses, mostly in science, for academic fees, with repayment starting twelve months after graduation.
The Higher Education Students Financing Board
Created by the 2014 student financing law, HESFB lends to Ugandans admitted to an accredited institution. Places are limited every year, and the board takes regional balance, gender and financial need into account when selecting beneficiaries.
HESFB priority STEM courses
The loan mainly targets diplomas and degrees in science, technology, engineering and mathematics. Students with disabilities can also be funded in the humanities, according to the lists published for each application round.
What the HESFB loan covers
The loan pays tuition, functional fees, research fees and assistive devices for students with disabilities. Accommodation, meals, medical care and study materials, on the other hand, remain the responsibility of the student or of the family.
A 7% value retention fee and 1% loan protection
Instead of conventional interest, HESFB charges a value retention fee of 7% a year on the outstanding principal. A protection charge of 1% of the annual amount covers the borrower's death or permanent incapacity.
Twelve months' grace, then repayment
Repayment starts twelve months after the end of the study programme. The maximum term equals twice the length of the course plus the grace year, and repaying while still studying carries no extra charge at all.
Government places at Makerere, Kyambogo or Gulu
Alongside the loan, the state funds free places at public universities such as Makerere, Kyambogo and Gulu, awarded on merit and through district quotas. These scholarships do not have to be repaid by the students who receive them.
Private universities: UCU, KIU and higher fees
Private universities such as Uganda Christian University and Kampala International University charge higher fees. HESFB can fund some accredited programmes, but most families combine savings, SACCO loans, bank loans and contributions from the extended family.
Bank loans for students' parents
A few Ugandan banks grant school fees loans to salaried parents, with instalments deducted directly from the payroll. Our page on school fees loans in Uganda describes these products, which are more often used for primary and secondary schools.
Applying on the HESFB online portal
Applications are made online during the round announced by the board. You must provide an admission letter, national ID, certificates, birth certificate, a photo and proof of payment of the 50,000 UGX application fee.
Recovery through Ugandan employers
After the grace period, the graduate must declare their employment, and the employer can be required to deduct repayments from the salary. The board has stepped up recovery in order to fund new cohorts of students.
Studying abroad without a public loan
HESFB only funds studies at participating Ugandan institutions. For study abroad, students rely on bilateral government scholarships, international programmes or family savings, since there is no dedicated public loan for studying outside Uganda.
The Ugandan model compared with Burundi
Other Great Lakes countries have adopted their own loan or bursary systems. The student loan in Burundi presents a different scheme, useful for cross-border families weighing up universities in the two countries.
Applying for the HESFB loan step by step
- Secure admission to an eligible diploma or degree programme at a participating institution.
- Check the list of funded programmes published with the HESFB call for applications.
- Pay the 50,000 UGX application fee and create your account on the board's online portal.
- Upload the admission letter, national ID, certificates, birth certificate and photo, then submit before the deadline.
- Follow the publication of beneficiaries, sign the loan agreement and report any change of programme.
Costs of the HESFB student loan
| Element | Amount | Detail |
|---|---|---|
| Application fee | 50,000 UGX (indicative) | Paid when applying |
| Value retention fee | 7% a year on outstanding principal (indicative) | Calculated on a reducing balance |
| Loan protection | 1% of the annual amount (indicative) | Death and permanent incapacity |
| Grace period | 12 months after studies | No repayment required during this period |
| Other administrative fees | According to the HESFB schedule | Change of programme, late payment or certificate |
Supporting documents for a HESFB application
- Admission letter from the institution
- National ID card or NIN
- UCE and UACE certificates or equivalents
- Birth certificate
- Recent passport photo
- Proof of payment of the application fee
Mistakes that cost Ugandan students their loan
- Applying for a programme that is not on that year's funded list, which leads to the application being rejected.
- Paying a middleman who promises a guaranteed place, when HESFB itself has warned against such scams.
- Changing course or university without informing the board, which generates fees and may suspend funding.
- Ignoring the loan after the grace period, when the board can approach your employer to recover it.
- Underestimating the cost of accommodation and meals, which the public loan does not cover.
Questions about student loans in Uganda
Does the HESFB loan carry interest?
It carries no interest in the conventional sense, but a value retention fee of 7% a year on the reducing balance. A protection charge of 1% of the annual amount comes on top. According to the board, repaying during studies avoids these charges.
Can master's students get a HESFB loan?
The scheme targets undergraduate diplomas and degrees. Master's students turn to university scholarships, cooperation programmes, their employer or a bank loan, as there is no public loan dedicated to postgraduate study.
What happens if a HESFB graduate cannot find a job?
Repayment in principle starts after the twelve months of grace, but the graduate must inform the board of their situation. It is better to negotiate a repayment plan than to ignore the loan, because charges keep running on the balance.
Does the HESFB loan cover university accommodation?
No. It is limited to academic fees: tuition, functional fees, research and assistive devices for students with disabilities. Accommodation, food and supplies must be funded by the family, a job or other forms of support.