Students at a graduation who would have benefited from the student loan scheme
The Development Bank of Rwanda (BRD) made a record Rwf 7.2 billion in recovered student loans in 2024 — the highest annual amount since it took over management of the country’s tertiary education loan scheme in 2016.
This milestone brings the total recovered over the past five years (2020–2024) to Rwf 25.4 billion, and the overall cumulative recovery since 2016 to Rwf 34.7 billion, signaling steady progress in the effort to recoup public investment in higher education.
The data is contained in it’s annual report for 2024.
BRD’s enhanced loan recovery operations come against the backdrop of a government push for accountability and sustainability in the national student loan program, which has historically faced low repayment rates.
By mid-2023, only Rwf 24.4 billion had been recovered out of a total Rwf 221.85 billion disbursed, with just 13.3% (18,626 out of 139,925) of beneficiaries having repaid their loans.
Rwanda’s student loan scheme, managed by BRD, is a government-funded program designed to support eligible Rwandan students who have secured admission to public, government-subsidized, or accredited foreign higher learning institutions.
The primary objective is to ensure that qualified high school leavers, and other higher levels, can pursue tertiary education without financial barriers.
The loan covers a wide range of academic expenses including tuition fees, living costs, research materials, and ICT tools necessary for learning.
Applicants must meet academic performance requirements and submit proper documentation during the application window.
Once awarded, the loan is disbursed under a formal agreement between the student and BRD and is expected to be repaid after graduation.
To complement improved enforcement and recovery mechanisms, the Government introduced a crucial reform in January 2023: a legal right of appeal for students whose loan applications are rejected.
The reform, published in the Official Gazette (Special No. of 05/01/2023), grants applicants 15 calendar days from the publication of the list of loan beneficiaries to contest BRD’s decision.
The bank must then respond within 15 days of receiving the appeal. The policy aims to create greater transparency and fairness in the loan awarding process, which has been criticized for excluding eligible students due to technical errors, narrow eligibility criteria, or limited funding.
Under the scheme, study loans are offered to students admitted into public, government-subsidized, or accredited foreign institutions of higher learning.
The loans cover tuition, living expenses, ICT equipment, research costs, and other approved academic needs — though they exclude transport, health insurance, and emergency fees for students studying abroad.
Loan repayment is structured in progressive tiers based on the total amount borrowed, with repayment terms ranging from two to ten years and relatively low fixed interest rates: 11% for undergraduates and 12% for postgraduates.
Despite these favorable terms, BRD has repeatedly flagged widespread non-compliance among graduates, including many now employed in public and private institutions.
With the 2024 recovery figures, however, there is cautious optimism that a combination of policy reforms, public sensitization, and improved collection systems is starting to yield results.
The government continues to count on the revolving nature of the fund to support future cohorts of students and build a highly skilled workforce essential for Rwanda’s socio-economic transformation.
