Minister of Education and Sports, Jessica Alupo (R) releases the approved students loans for the academic year 2014/2015 at Media Centre on September 8, 2014, as the Chairman of Higher Education Students Financing Board, Rev.Fr.Prof. Callisto Locheng looks on. Photo/PETER BUSOMOKE
By Innocent Anguyo
The Higher Education Students’ Financing Board has directed all the beneficiary universities of the students’ loan scheme to submit their respective invoices so that the Government can disburse the loans.
An invoice is a non-negotiable commercial instrument that serves as a demand for payment and becomes a document of title when paid in full.
The invoice for the loan scheme, among others, indicates the total number of loan recipients in a specific beneficiary institution, the cost of their courses and the terms of payment.
The beneficiary institutions include Makerere University, Kampala International University, Kyambogo University, Busitema University, Gulu University, Ndejje University and Nkumba University.
The others are Bugema University, Uganda Martyrs University, Islamic University in Uganda, Mbarara University of Science and Technology and Uganda Christian University.
In an interview with the New Vision yesterday, Michael Wanyama, the interim executive director of the students’ financing board, said they had signed agreements with all the universities and were waiting for their invoices.
“We have written to the universities and we expect them to respond as quickly as possible so that we can disburse the money,” said Wanyama.
However, some universities on Monday insisted that they had already delivered their invoices and were now waiting for the disbursements from the loans board.
Makerere University secretary Kahunda Muhwezi said he delivered the invoice “some time back” and was promised that over sh600m would be transferred to the university account today (Tuesday).
The tuition loan scheme was introduced to increase the number of needy students accessing higher education.
This year, the board awarded loans to 1,269 students. The Government has concluded signing the loan agreements with all recipients of the loans.
The signing of the loan agreements is a prerequisite to receiving the loan. Loan offer letters were also issued to recipients after they signed the agreement.
Wanyama also told New Vision that six recipients shunned the loans after they got alternative sponsors.
The lowest loan advanced this year is sh1,750,000 for bachelor of education at Gulu University, while the highest is sh6,782,000 for bachelor of engineering at Uganda Christian University.
The average unit cost for the students being supported this financial year is sh4,266,000.
The loan cover tuition fees, functional fees, research obligations, appliances and aids for people with disability.
The Government set an interest rate of 7% for the first beneficiaries this year although the rate will fluctuate depending on the prevailing inflation rate.
According to education minister Jessica Alupo, the interest is to maintain the value of the money given to the board and it is not for profit.
Launching the scheme at Kyambogo University in May, President Yoweri Museveni urged needy bright students to take the loans but cautioned them against defaulting.
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