140,000 Students Will Miss Out on HELB Loans
Due to the Higher Education Loans Board (Helb) running out of funds, approximately 140,000 students enrolled in public universities and technical and vocational education and training (TVET) institutes are facing challenges in obtaining State loans. The Treasury needs to provide Sh5.7 billion before any further payments can be made.
The majority of loan applicants come from low-income families and rely on Helb for financial assistance with tuition and living expenses.
The organization had 140,000 unfunded students, almost triple the number from the previous year due to a Sh3 billion delay in disbursements by the Treasury.
The delayed funding has forced the affected students, most of whom are first-years, to seek alternative means to cover their tuition, housing, and maintenance costs while they wait for government funding.
Despite a request to use extra funds to address the financing shortfall, it was denied.
Also Read: HELB Issues New Directive To All University Students
Helb is intended to be a revolving fund, but the current economic downturn and hiring freeze have hindered former students’ ability to repay their loans, impacting the availability of funds for new students.
Helb and the Treasury agreed to a settlement, distributing payments every six months instead of every four months to address the mismatch.
Helb has been struggling to keep up with the increasing demand for loans, as the number of government-sponsored students at public universities has grown significantly in recent years.
Loan defaulters have further weakened Helb’s ability to fund students, resulting in budget cuts and greater reliance on the Treasury.
During the height of the Covid-19 pandemic, almost 100,000 former university students were unable to make Helb loan installments, exacerbating the financial challenges faced by the organization.
140,000 Students Will Miss Out on HELB Loans
