In Northern Uganda, where families are rebuilding their lives after conflict and displacement, education is often described as “free.” But for most parents, especially South Sudanese refugees and rural Ugandans, the reality is that sending a child to school makes “free education” feel far from free.

What “Free” School Really Costs

Uganda’s policy of Universal Primary Education was designed to make schooling accessible to all. Yet in practice, families must still cover expenses for uniforms, exercise books, pens, exam fees, report cards, and school maintenance contributions.

In one refugee settlement, parents reported paying the equivalent of $6–$10 per term (20,000-40,000 UGX) per child just for uniforms and small school fees. Others are asked to provide beans or maize flour for school meals, or daily “penalty” fees when a child lacks the required uniform. For families struggling to make ends meet, these small payments can mean the difference between a child attending school or staying home.

And these are only the primary years. At the secondary level, costs rise sharply. Even government-aided schools often charge tuition, lab fees, and boarding costs. A single term can run hundreds of dollars, far beyond the reach of most rural households or refugees still rebuilding after fleeing war.

The Hard Choice Between Public and Private

Government schools are typically the most affordable option, but they face significant challenges: overcrowded classrooms, limited textbooks, and frequent teacher absences. In some schools, more than 80 students crowd into a single room. Desks and materials are scarce, and teachers often go unpaid for months.

Private schools may offer smaller class sizes and more consistent teaching, but at a price few can afford. Even the most modest private schools require full tuition payments at the start of term, precisely when income is lowest for families relying on small harvests or informal labor.

                                                                                 Agnes Bako and her children, Yumbe

When Savings Are Measured in Single Digits

Seed Effect members care for an average of five dependents, three of whom are school-age. When refugees join Seed Effect, they typically have less than $5 in savings, and nearly half of refugee members report having nothing at all. A $10 school fee can represent an entire month’s savings, making paying even a small school contribution for one child a serious hardship, let alone for five. 

Yet within their first year of saving together, groups like God Is Good collectively saved more than $2,100, averaging $87 per person—enough to cover several months of rent, school fees for multiple children, or the startup capital for a small business.

By their third year, their total savings had grown to more than $12,000. With that growth comes resilience: parents can keep their children in school, even if life throws them another crisis.

                                               Salvation 1 Group, Oligi Refugee Settlement, Adjumani

Education as the First Priority

When we look at how members use their small loans, school fees and business investments consistently top the list. Even when money is tight, members prioritize education, sometimes choosing to eat only one or two meals a day so their children can stay in school.

In fact, our data shows that 67% of first loans taken by new members in their first cycle are used to pay for school fees. By the third cycle, that number decreases to 20%, while the percentage of first loans used for business grows from 17% to 36%.

This shift reveals a powerful pattern. Families begin by meeting their most urgent need—keeping their children in school. As savings grow and income stabilizes, they’re able to invest in small businesses that sustain those gains long-term.

For Betty Poni, a mother of five and Seed Effect member in Imvepi Refugee Settlement, that shift has been life-changing. She shared:

“It was hard for me to keep my children in school. I couldn’t feed my family twice a day; we ate once. In the evening, we would go to sleep without food. Even buying sandals for my child or myself was a struggle.”

Today, things look very different. After saving and investing loans to grow her small business, through her Seed Effect group,  Betty shared: 

“The business has changed my life. Now I can pay my children’s school fees. We are also able to eat two or even three times a day. Another big change is with the rentals—I built these houses. We started with just two, and now we have expanded.”

Betty’s story mirrors what we see across Seed Effect savings groups: education is the first priority, but as stability grows, families are able to invest in income-generating businesses that provide long-term security and resilience.

Why Education Matters

Education offers far more than literacy or job prospects. It protects futures. Each additional year of schooling for a girl reduces her risk of early marriage and increases her earning potential. For boys and girls alike, it strengthens families, improves health, and builds more stable communities.

As members progress through each savings cycle, they’re able to support more school-aged dependents, and more of those children are regularly attending school. What once felt impossible is becoming normal: families planning ahead for school fees and providing stability for their children’s education.

Just as savings protect livestock and crops from being lost in a crisis, they also safeguard a family’s most valuable asset — opportunity. When parents can pay school fees without selling what they own, they preserve both their progress and their children’s future.

Education restores dignity, stability, and hope for families who have lost so much. When a child can stay in school, a family begins to believe again in a future beyond survival. Seed Effect’s savings groups are helping make that possible, one family, one term, one child at a time.

                                                                          Milly Asienzo and her children, Kajo Keji