MPs call for HESLB transformation into fully-fledged fund

DODOMA: THE government has been urged to transform the Higher Education Students’ Loans Board (HESLB) into a fully fledged fund so as to strengthen its financial capacity and address the growing demand for higher education financing.

The proposal was raised yesterday in the National Assembly in Dodoma during debate on the Ministry of Education, Science and Technology’s 2.394tri/- budget estimates for the 2026/27 financial year.

Ms Asha Feruz (Special Seats, CCM) said reforms were necessary to enable HESLB to mobilise additional resources and expand support to the increasing number of students seeking higher education loans.

The legislator acknowledged progress made by the Board over the years, noting that annual loan disbursements had increased significantly from about 70bn/- during its early years to nearly 900bn/- currently. However, she said the available funding still falls short of meeting growing demand from eligible students.

“My recommendation is that we should consider reforms to the Loans Board. While the Board is doing a very important job, the demand from students is very high and the available funding is not sufficient to cover all eligible applicants,” she said.

Ms Feruz proposed transforming HESLB into a fund, arguing that such a move would allow the institution to reform its legal framework and expand income-generating opportunities beyond government allocations.

“I suggest that we transform the Loans Board into a Fund. This would allow us to reform its legal framework and expand its ability to generate income. Continuing to rely on a single source of funding limits access for children from poor families, including those from farming households,” she said.

According to the MP, HESLB remains heavily dependent on government financing and has yet to fully utilise opportunities available through private sector partnerships and financial innovation.

She suggested that the proposed fund could explore investment mechanisms similar to those used in other sectors, including bond issuance models.

“The same can be applied in education. Even the health insurance fund allows people to invest and later benefit from services. In education, a person can invest from the beginning and benefit later, while the funds continue to support other students in need,” she added.

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Ms Feruz also raised concern over the high cost of university education, saying many students from low-income families fail to complete their studies because loans do not adequately cover tuition fees. She noted that some students are required to pay tuition fees of up to 4m/-, while the support they receive often covers less than half of the amount.

“Although students receive upkeep loans, tuition support remains insufficient. Even as we encourage students to pursue science and professional courses such as medicine, the costs remain very high. Ultimately, we are not adequately supporting these students,” she said.

The MP proposed that the government consider covering at least half of tuition costs for students in order to reduce the financial burden on families and improve completion rates.

Meanwhile, Musoma Rural MP Professor Sospeter Muhongo (CCM) commended the current education system and proposed that at least half of the 3.43 million students enrolled in Forms One to Six during the 2025/26 academic year should pursue science subjects.

He said such an ambitious target would require a stronger and more sustainable higher education financing institution capable of supporting science and professional training programmes.

Presenting the report of the Parliamentary Standing Committee on Education, Culture and Sports, committee member Asha Juma Feruzi urged the government to ensure timely disbursement of all funds allocated to HESLB as approved by Parliament.

She said prompt release of the funds would help reduce financial barriers and expand access to higher education for eligible students. The committee also advised the government to develop a strategy that would enable universities offering health-related programmes to establish teaching hospitals for practical training.

In addition, Ms Feruzi called for continued budget allocation for in-service teacher training, particularly for sign language teachers, to strengthen inclusive education and improve learning conditions for students with special needs.

“The Government should continue allocating a budget for in-service training, particularly for sign language teachers, in order to empower them to promote inclusiveness, positive attitudes and a supportive learning environment for students with special needs,” she said.