HELB yet to release students cash over delayed funding
The Higher Education Loans Board (HELB) has not yet disbursed funds to both new and continuing students in higher learning institutions. The CEO of HELB, Charles Ringera, has reassured that the Ministry of Education is actively pursuing the release of these funds. New students can still apply for funding until October 7.
As of now, no funds have been released to either continuing or new students, according to Ringera. The Higher Education Principal Secretary, Dr. Beatrice Inyangala, has encouraged university students to report any institutions that demand a 7 percent payment of fees before admission. Vice Chancellors have denied making such requests.
Inyangala also mentioned that the government has provided increased capitation to support continuing students and ensure uninterrupted operations.
These statements were made during their appearance before the National Assembly committee on education to discuss the HELB (Amendment) Bill, 2022, and HELB (Amendment) Bill, 2023. The proposed amendments include interest-free loans until employment is secured and a maximum interest rate of 3 percent per annum.
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However, HELB’s CEO, Ringera, expressed concerns about the financial implications of these amendments, stating that loan recoveries already constitute a significant portion of the HELB budget. He emphasized that adjustments in repayment timelines and interest rates could impact future student funding.
Reducing the interest rate, especially in a high-inflation environment, would result in substantial losses for HELB. Additionally, extending the repayment period to five years would affect funding for subsequent generations of students.
In summary, HELB has not yet disbursed funds, the Ministry of Education is working on it, and there are proposed amendments to HELB policies that raise concerns about their impact on funding and loan recovery.
HELB yet to release students cash over delayed funding
