The Government of Rwanda has made a decision establishing a new student financing scheme to ensure strategic funding of tertiary education and put in place sustainable student loan scheme.
Under the new student loan scheme only students in category 1-2 of ubudehe will receive loan to cover 100% of tuition costs and living allowances, while students in category 3-4 receive loans for 50% tuition fees and do not get living allowances.
Students in category 5-6 will cater for all expenses on their own.
In old scheme, loan to cover living allowances are given to students in categories 1 to 4 of ubudehe while students in Categories 5 to 6 meet their own living costs.
The New scheme also establishes that there will be no grants components and thus all funds paid out by Government will be fully recovered.
Interest rate payable on loan acquired will shift from 5% to 7% while percentage of monthly payments from gross salary until loan beneficiary clears loan due will be at least 8%.
Under the old scheme Government pays Rwf 26 billion to 7,154 students.
The new scheme will use Rwf 16.2 billion funding on average of 12,684 students annually.
It is expected that by 2022/23 Government will fully phase out of funding the loan scheme.
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