The Ministry of Education and Sports has given beneficiaries of the Government Student Loan Scheme who have failed to repay their loans a final six months to clear their arrears or make repayment arrangements, warning that defaulters will face public naming and other legal recovery measures.
In a public notice, the ministry directed all graduates who have completed their studies and exhausted the grace period provided under the scheme to immediately regularise their loan accounts.
Signed by the Permanent Secretary, Dr. Kedrace Turyagyenda, the notice describes the directive as a final warning and the last opportunity for borrowers to comply voluntarily before enforcement begins.
The ministry warned that anyone who fails to act within six months risks having their names published in both print and digital media, in addition to facing other lawful debt recovery measures.
The Government Student Loan Scheme was established in 2014 to enable academically qualified students from financially disadvantaged families to access higher education. Beneficiaries are expected to begin repaying their loans after completing their studies and securing employment.
By the end of 2024, the scheme had financed more than 16,000 students pursuing over 150 academic programmes. It has since been integrated into the Ministry of Education and Sports following a wider government rationalisation programme.
However, officials have consistently struggled to meet the growing demand for student loans. Each year, the scheme receives more than 6,000 applications but has only been able to support about 1,500 students, making loan recoveries from past beneficiaries critical to financing future applicants.
The repayment notice comes as many graduates continue to face limited employment opportunities. According to the Uganda Bureau of Statistics, graduate unemployment stands at 15.2%, although some labour market analysts believe the actual figure could be significantly higher.
Uganda also sees an estimated 700,000 people join the labour market annually, placing increasing pressure on an economy that is creating formal jobs at a slower pace than the number of new job seekers.
