FAQ(Frequently Asked Questions)

1. What is SFAR...?
2. What is SFAR commitment and key values for succes?
3. What Types of SFAR loans and bursaries?
4. What is the amount covered by the loan for students studying abroad ?
5. Who can apply for SFAR student loan?
6. When Signing a contract with SFAR for SFAR loan?
7. Assistance to students traveling abroad
8. When and how SFAR will pay to the student?
9. When and how the beneficiary of the loan shall repay the SFAR loan?

What is SFAR ... ?

The Student Financing Agency for Rwanda (SFAR) was officially established by the Cabinet on 29th July 2003. This Agency is mandated to manage and administer student financing for Higher Education both in Rwanda and abroad and to introduce and implement a student loan scheme. According to LAW No 50/2006 of 05/10/2006 establishing SFAR, it is specified that SFAR will operate as an autonomous agency under the Ministry of Education (MINEDUC). The main functions of SFAR are determined in Article 8 of the said Law. SFAR is composed of two administrative organs; the Board of Directors and the Management. The Board composition is seven members with a three-year term of office renewable only once. The management of SFAR is divided into four Units/Departments; the Loan and Bursary disbursement unit, Loan Recovery unit,ICT unit and Administration and Finance unit.

Top

What is SFAR commitment and key values for succes?

SFAR is committed to develop Rwanda's Human Resource capacity through financing students in Higher Education. SFAR will provide financial support to eligible Rwandese pursuing Higher Education in recognized institutions within and outside Rwanda. SFAR Key values are: transparency and openness, fairness and equity, innovation and entrepreneurial spirit, state of the art technology. SFAR is client-centered and result-oriented.

Top

What Types of SFAR loans and bursaries?

The main type of loan/bursaries offered by SFAR are:

• Student Loan/bursary for students enrolled in Local HLIs (also called LL)
• Student Loan/bursary for students enrolled in Foreign HLIs (also called FL)

As a general definition, a loan is a form of financial aid that is given to students and that must be repaid. Bursaries on the other hand, do not have to be repaid they are granted to students who have higher academic merit .

A Ministerial order determines the criteria for providing loans while a Presidential order determines criteria for granting bursaries.

There are the following types of FL loan/bursary:

1. FL loan on Government/SFAR Budget. In this type of loan, all costs, including the tuition fees are paid by the Government/SFAR.
2. FL cooperation loan/bursary supplemented by Government/SFAR. In this case, a part of the costs such as tuition fees are covered by host countries and HLIs. SFAR provides a supplement for covering other costs.
3. FL cooperation bursaries (grants) without supplement. In this case, the donor (country or organisation)covers 100% of the cost of studies. SFAR, in collaboration with the donor partners attributes these grants to the highest priority students who meet the donor's eligibility criteria and Rwandan Government's criteria

Top

What is the amount covered by the loan for students studying abroad ?

The amount of loan and the items covered depends on the type of FL-loans, countries and grades. Hereafter figures the explanation of the loan items:

• Tuition fee:
  This amount is directly paid to the host universities or offered by the universities.
• Subsistence:
  This is a fixed amount per month to help the student to cover his/her subsistence expenses. It is paid by SFAR during 12 months of the year, as long as the student continues his/her studies regularly and successfully.
• Research:
  SFAR also helps the students to cover some of the expenses related to the preparation of their research for memoire or thesis. A fixed amount is paid once by SFAR to the student at the end of his studies to carry out his research.
• Travel expenses:
  SFAR pays only one return ticket for the whole duration of studies and an excess luggage of 30kg for returning students at the end of studies.
• Other:
  Other eligible items may include travel and medical insurances.

  The amount of tuition fees (when not offered by HLIs), tickets and insurances will be added to the amounts paid directly to the student. The total real amounts paid to or for the student will constitute the amount of student's loan. But for the repayment of the loan, the student will pay back the same amount of money as granted to a student having studied the same course in Rwanda.

Top

Who can apply for SFAR student loan?

Every student wishing to be considered for the award of a higher education loan by the Government of the Republic of Rwanda to study in a Local or Foreign Higher Learning Institution (HLI) shall fill in a SFAR standard application form. When applying, the student shall be aware that he/she is applying for a loan with the obligation of repaying.

Priority will be given to the best performing students, coming from disadvantaged social back ground and studying in the fields with highest impact on the social and economic development of the country. Students who chose to follow subjects related to science and technology are given priority.

How to apply for SFAR loan?
Students shall apply to SFAR by following the steps explained below:

1. Fill in the standard Application Form approved by the SFAR Board of Directors,
2. Send the original form, fully completed and signed, with all required supportive documents, to SFAR,
3. SFAR will register the complete and accurate applications, sent in due time, in the SFAR database and will submit them to the Board of Directors to take decision,
4. The SFAR Board, or the Selection Committee designated by the Board, will review the applications received before the closing date. The Board may pre-select, or reject or withhold any application for a loan according to the eligibility and priority criteria set by the Board,
5. After the Board of Directors has taken decision, SFAR publishes the list of applicants whose loan applications were approved and the list of those whose loan applications were not approved,
6. Unsuccessful applicants may contact SFAR to be informed of the reasons for which their application has been rejected,

NB: Any student who, in filling in a loan application form, knowingly makes any false statement; or any student being required to answer any questions or to provide any document neglects to do so without reasonable cause; or any student who has been granted a loan based on false information, will be excluded definitely and permanently from the SFAR list of beneficiaries and shall reimburse immediately all amounts already received from SFAR. In addition he/she shall be guilty of an offence and be liable to a fine as prescribed by the law.

Top

When Signing a contract with SFAR for SFAR loan?

Successful applicants are invited to sign a contract with SFAR.The contract must indicate the duration of the loan and for how many academic years it will cover.

The contract establishes the amount of the loan, the payment and the repayment conditions. When the contract is signed, the student will become officially a beneficiary of a loan. He/she will be given a "SFAR-ID Number" meaning a number allocated to a loanee by SFAR and which is used to identify him/her while pursuing education and during employment. The loan beneficiary should send regularly to SFAR for updating all information required by SFAR.

SFAR has full powers to terminate the contract at any time it notices that the loan granted is not used for the purpose for which it was granted.

Top

Assistance to students traveling abroad

SFAR will provide the successful applicants with all administrative documents necessary to obtain a student visa from the host countries. Students shall take all required steps to obtain a national passport and to submit their visa requests.

SFAR will provide the student with the travel ticket. The Agency will contract also necessary medical and travel insurances for the student. Students shall learn to be perfectly organized and to live independent lives. They shall not rely upon SFAR for arranging the numerous administrative steps that they shall accomplish before and during their studies.

Top

When and how SFAR will pay to the student?

For the students who are studying abroad, SFAR will pay the students through the Rwandan Embassies in foreign countries. If there is no embassy, SFAR may channel the funds either through a recognized Rwandan organization or directly to the students accounts opened in the host countries. Subsistence funds will be paid at the beginning of each quarter.Students shall provide annually a progress report to SFAR through the Embassies or directly if there is no Rwandan representation in the country.

For the students studying in local institutions, SFAR will pay the students through the host local HLI. Subsistence funds will be paid monthly. Local HLI sholud provide annually a progress report to SFAR about the academic situation.

For all students, payments will cease in case of death, drop-out, exclusion from the HLIs and other cases specified in the contract. The disbursements will be suspended if a student repeats a year unless the Rector of the host institution certifies that the repeating was due to a valid reason that is examined and accepted by SFAR Board of Directors. Once the student is promoted the following year, he/she shall reapply to SFAR in writing for continuation of his/her original contract.

Top

When and how the beneficiary of the loan shall repay the SFAR loan ?

Students having benefited from SFAR loan have the obligation to repay after completion or interruption of studies and after securing a gainful employment.

The following are some of the user friendly steps and useful information in paying back:

• Every Loan beneficiary will be required to collect a loan certificate from SFAR, indicating that he/she received a student loan and specifying the actual amount. This certificate will be requested for by any prospective employer as part of the employment application dossier.
• Upon satisfactory securing employment, the employer will notify SFAR of a new employee who obtained a student loan. SFAR will then advise the employer on how much to deduct from the employee's monthly salary as loan repayment until repayment is completed. This will be a gradual deduction. The deducted amount will be paid directly by the employer to SFAR account. The rate of deduction will at all times be in accordance with the legal framework governing the loan scheme.
• Individual voluntary repayment by the beneficiary himself/herself is another option. This may be done once or gradually until the total loan is fully paid. This is especially applicable to self employed debtors whose earnings cannot easily be accessed by any other authority.

SFAR loan recovery accounts have been opened in BNR and in commercial banks in order to facilitate the debtors who reside in different parts of the country and abroad to pay their loans easily. The opened accounts are the following:

1. BNR;
   account No 120.29.93 (in Frw)
   account No 320.77.59 (in USD)
2. BCR;
   account No 5032611-01-93 (in Frw)
3. COGEBANQUE;
   account No 130-1053584 (in Frw)
4. Fina Bank;
   account No 0170454006 (in Frw)

Upon satisfactory completion of payment of the entire loan, SFAR will issue a loan completion certificate of appreciation. This certificate certifies that the holder does not have any outstanding loan owed to SFAR.

Top