Although resolute efforts by the government mainly aim at skills development and education for all, needy students seeking for sponsorship through bursaries and loans will have to apply through a timely competitive selection process following new guidelines from the Ministry of Education. 

With this year’s May to June loan applications already complete, students are to keep their eyes open for the second call of applications between October and November for the March 2015 intake.

The new guidelines

According to the new guidelines, a call for loan applications will be advertised on a number of websites and media platforms twice every academic year.

Although the student loans have been in existence for some time, a number of changes will be effected next academic year to improve performance. Amidst the ongoing discussions is the switch of financial management of the loan scheme from the Student Financing Agency of Rwanda (SFAR) to Rwanda Development Bank (BRD) as Alex Kanyankole, the chief executive officer of BRD, explains.

"Since BRD’s expertise lies in the financial management, the course applications and selection will be handled by the SFAR which will thereafter handover the information of successful candidates to us for loan processing,” Kanyankole says.

Furthermore, loan applicants seeking for sponsorship to study abroad shall apply directly to the Rwanda Education Board (REB). However, it will be for particular courses as the adverts will specify. Doctoral students will be required to register with the University of Rwanda before applying to REB.

Who qualifies?

Local students will still be financed under the Ubudehe categories that have now been classified into two major groups as part of the selection criteria for funding.

The ubudehe levels are characterized as

1- Umutindi nyakujya (those in extreme poverty ) who need to beg to survive without land, livestock, shelter, adequate clothing and food, access to medical care, malnourished children that do not attend school.

2- Umutindi (the very poor), same as 1 but physically capable of working on land owned by others with very small landholdings without any livestock.

3 - Umukene (the poor), have some land and housing but live on their own labour and produce. They have no savings but they can eat, even if the food is not very nutritious.

4 - Umukene wifashije (the resourceful poor),same as 3 but may have small ruminants and their children go to primary school.

5 - Umukungu (the food rich) have larger landholdings on fertile soil and enough to eat. They also own livestock, often have paid jobs, and can access health care.

6 - Umukire (the money rich ), people in this category have land and livestock with salaried jobs as well as good housing, often own a vehicle, enough money to lend and access credit from the bank.

Students in Ubedehe 1-4 are eligible to apply for a student loan that will cover 100 percent of their tuition fees and living allowances.

"This new classification is meant to increase the number of students receiving full funding compared to the previous three categories where full funding was only for ubudehe 1 and 2,” says Professor Silas Lwakabamba, the Minister for Education.

With the changes in place, the students in the first category will continue to receive on top of the funding, Rwf 25,000 each month as living allowances with their food costs covered.

Students in Ubudehe categories 5-6 will meet tuition fees and living expenses on their own meaning that private students will have to pay Rwf600,000 for all academic programmes in public higher institutions of learning.

However, according to the Ministry, there is a possibility of paying tuition in a more flexible way. Students are advised to contact their respective higher institutions for details.

Under the third consideration criteria for funding, the loan will be allocated basing on the points scored at the senior six national exams and students who score 73 out of 73 are eligible for the Presidential Scholarship Awards within this category.

"This year, 40 students received this award of excellence to pursue different disciplines in science and technology,” says Sharon Haba, the permanent secretary Ministry of Education.

Other scholarships are also available on merit from partner institutions and organisations.Students wishing to study abroad can also access the loan but only for rare courses that are not available in Rwanda public universities.

Among other considerations for the loan will be the course demand and labour market. But most importantly, according to Louise Karamagye, the deputy director general of SFAR, the number of loan beneficiaries will depend on the resource envelope.

How the old system worked

To find out how the current loan procedure for students has been functioning for students studying in Rwanda universities, we asked Eric Muhire, a fourth year student of Urban Planning at Butare University, how they have been applying for the student loan.

"It is through the Ubudehe categories that we are considered for these loans. In the first two categories, the applicant receives 100% full sponsorship whereas those in category 3 and 4 receive a partial scholarship excluding monthly rent. For category 5 and 6, you refund 100% of the loan,” Muhire explains.

Unlike Muhire, there are students who dislike the whole set up of loan qualification."Sometime back every one who passed would qualify for a loan scheme but today they follow Ubudehe,” says a student at university of Rwanda Kigali campus.

Mode of repayment

"The payment of the loan is mandatory for every student upon employment after completion of their course,” Karamagye says. "When students graduate, 8 percent of the gross salary is deducted with an interest of 7 percent.”

Lwakabamba calls on beneficiaries to pay back after their education in order to facilitate continuity of the process.

"If a bigger percentage of students pay back in time, more students will be recruited through the loan application system,” Lwakabamba advises, adding that over time, identity card numbers and social security numbers will be of great help especially in tracking defaulters.

The ministry says it plans to work with the Credit Reference Bureau to track down defaulters.

Your views on student loans

Charles Sinamenye, Parent

Allowing students to apply for loans will be very good since it enables them to study their desired courses. Since most Rwandans are now aware of the importance of education, I believe everyone will embrace the opportunity with open hands.

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Gloria Mutuzotusifu, a student

I didn’t know anything about this loan scheme but now that I do, I will surely take up the chance. Perhaps it will also motivate me to work harder. The only problem is in paying the loan back especially given the limited job opportunities.

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Arthur Ntashamaje, a parent

The student loan policy will drive our families from poverty. The more people access education the better for our society because we shall have more entrepreneurs.

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Tonny Nizeyimana, a parent

Since these loans give priority to low income earners and students with special needs, I think they are a big boost to the education system. University education is expensive and you may not cope with all the requirements at ago.

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Prossy Hategeka, a teacher

Providing loans to students to study outside Rwanda is good since we are integrating as a region. These students learn several cultures from the neighbouring countries which they share with us here. This makes it easy to fit in any part of the world.

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Theophile Nzabamwita, teacher

As a poor man, I’m very happy the Government is introducing such policies. It means many more people will see their children graduating from university. At this rate, Rwanda will meet the millennium development goal on education.