World Bank approves $250 million loan to reform student financing in Uzbekistan

Over the next three years, the program is expected to benefit around 600,000 young people by widening access to tuition loans and improving how student financing is administered. Approximately 80% of the funding will be allocated to loans for vulnerable groups, particularly students from low-income families and women.

Uzbekistan’s youthful demographics have driven rapid expansion in post-secondary education. With an estimated 10 million people aged 14–30, the government has made higher education and TVET a policy priority. As a result, the number of higher education institutions has nearly tripled, and youth enrollment rose sharply from 8% in 2017 to 48% in 2024.

This rapid growth, however, has placed significant strain on the existing student loan system, which relies on state-subsidized loans issued through commercial banks. The system also remains weakly aligned with labor market needs. Current tuition loans do not prioritize high-demand fields such as science, technology, engineering, and mathematics (STEM) or information and communication technology (ICT), limiting graduates’ employment and income prospects.

Gender disparities in fields of study remain another challenge. While women account for 55% of university students and receive about 80% of tuition loans, only one-third of female students are enrolled in STEM disciplines, where skills shortages are most acute.

The EduImkon Program, to be implemented by the Ministry of Economy and Finance between 2026 and 2028, is designed to address these structural weaknesses. Planned reforms include modernizing the management and operations of the student loan system, improving coordination among relevant ministries and agencies, and launching a unified digital platform to speed up loan processing, enhance transparency, and strengthen data-driven decision-making.

The program will also refine eligibility criteria and adjust interest subsidies to expand access for low-income students and women, while increasing the labor-market relevance of education programs. A key innovation will be the development and pilot introduction of income-contingent loans, under which repayments are linked to graduates’ earnings, providing protection for low-income earners and those facing temporary unemployment.

By the end of 2028, around 600,000 students in higher education and TVET programs are expected to receive tuition loans through 12 participating commercial banks, operating in coordination with the Ministry of Economy and Finance. In addition to public funding, the program aims to mobilize about $30 million in private capital, helping to broaden student lending and ease pressure on the state budget.