How New Varsity Fees Will Burden Students With Loans
The government has unveiled the revised fees that incoming university students will need to pay under the updated model for each specific university course. Some students won’t have to pay fees upfront but will instead have to take out student loans to cover the remaining costs. This shift could potentially lead to higher debt levels among Kenyan citizens due to the prevalent unemployment situation.
The Ministry asserts that this new funding approach aims to increase university enrollment and alleviate financial strain on institutions grappling with significant debts and outstanding bills.
The model categorizes students into groups based on their financial need, ranging from vulnerable to less needy. The framework allows access to scholarships and loans funded by the government.
Students in the vulnerable category have no household income, while extremely needy students earn around Ksh23,671 per month. Needy students fall within the range of Ksh23,672 to Ksh70,000 monthly income, and less needy students earn between Ksh70,001 and Ksh200,000 per month.
The Higher Education Loans Board (HELB) Means Testing Instrument will assess the level of need, considering factors like parental background, gender, course type, previous education, and more.
The government has allocated Ksh39.4 billion for the New Funding Model in the 2023/2024 fiscal year. An additional Ksh12.5 billion has already been assigned this year to support the model, while the remaining Ksh18.6 billion will be provided during the Supplementary 1 phase of the same fiscal year.
Students must apply for loans and scholarships by September 7 through the official website hef.co.ke, with applications being free. Verification takes approximately seven days, and funding distribution follows soon after.
As of August 23, 2023, there have been 75,272 successful applications from university and TVET students. The Ministry of Education expects around 140,107 university students and 145,060 TVET students to apply before the deadline.
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University students will see varying levels of financial support based on need. Vulnerable students will receive 82% scholarships and 18% loans, while extremely needy students will get 70% scholarships and 30% loans. Needy students will receive 53% scholarships and 40% loans, with 7% paid by their families. Less needy students will get a 38% scholarship, 55% loan, and contribute 7% from their families.
Similarly, TVET students will receive support on a sliding scale. Vulnerable learners will obtain an 80% scholarship and a 20% loan, extremely needy students will receive 70% scholarships and 30% loans, needy students will be given a 50% scholarship, 30% loan, with families contributing 20%, and less needy students will receive a 32% scholarship, 48% loan, and contribute 20%.
Furthermore, students will receive maintenance allowances ranging from Ksh13,600 to Ksh60,000, depending on their level of need and whether they’re in universities or TVET institutions.
Finally, the amount a student receives also hinges on their chosen course, as demonstrated in the varying fees for five different university programs. These include degrees in Medicine, Law, Education, Arts, and Commerce.
How New Varsity Fees Will Burden Students With Loans
