Uganda introduced the student loan scheme in the year 2014 as a measure to enable academically strong but financially disadvantaged students access higher education. The understanding was that such students would borrow money for their university education and pay back on completion upon getting gainful employment. This was expected to reduce the gap between the rich; who can pay for the education of their children and the poor who could not afford such fees; and therefore in the long run reduce the socio-economic gap between the  two categories. The scheme was intended to act as a revolving fund where students borrow and finance their education, payback with interest and the money would be lent to another client. The authors have argued in this article that the economic conditions in the country may not be favorable for the scheme, given the high unemployment rates, lack of trustworthy borrowers and the small size of the fund resulting from the competing needs of the government coffers. This article is a result of interviews conducted with the beneficiaries; the body administering the fund; and the university authorities where the education service is rendered to the beneficiaries. The study findings revealed that the scheme has yielded benefits to the beneficiaries who would otherwise not have accessed university education; but at the same time it has a number of challenges. The findings led to the conclusion that there are a number of interventions that are necessary to ensure that the fund performs better and for the good of the targeted beneficiaries.