Beneficiaries of Higher Education Loans Board, Helb, funding would pay reduced loan interest rates if a Bill by Hon Gideon Keter (who is a Jubilee Party nominated Member of Parliament represent Youth interests in the National Assembly) sails through.
Interest charged on university and college student loans will be cut to 3% and the grace period for repayment increased to five years after graduation if lawmakers approve changes to the Higher Education Loans Board (Helb) Act.
Under the proposed law, interest on the loans will fall from 4% to cushion jobless graduates from the Sh5,000 monthly fine for defaults.
“The aim of this proposals is to reduce the financial burden on recent graduates who are expected to pay large sums of money to Helb even before securing employment or becoming financially stable…… It sets the percentage of interest that may be charged on the loan advanced at three percent. It also provides that the penalty charged on defaulting of the loan shall be charged after securing employment or five years after completion of studies.” Reads the bill that was tabled in Parliament.
The agency in January this year said it was pursuing some 78,328 defaulters holding Sh7.7 billion as at December 31 last year (2019).
If passed, the new law will provide a big relief to thousands of unemployed youths who have hge Helb loan balances to clear.
There has been a sharp increase in university enrollment, since 2014, a scenario that has seen rise in demand for loans.
In line with the current Cost Sharing Policy, where Government sponsored students receive about 80% GoK subsidy, HELB can therefore award a maximum loan of Sh60,000 and a maximum bursary of Sh.8,000.
See also;
- HELB loans and bursaries for TVET students; 2020/2021 first time loan applications
- Higher Education Loans Board, HELB, to publish names of defaulters since 1975 on newspapers; This is what you should do.
- HELB Loans and scholarships for all students; A detailed description
- Helb loan refund; How to get the refund plus the HELB Loan Recovery Enquiry form
- HELB LOANS, WEBSITE, PORTAL & SERVICES: Your ultimate guide on all requirements, application, disbursement and repayment of HELB Loans and Bursaries
- How to apply for HELB loan clearance, compliance certificate and refund; requirements and process
- Helb student loans; How to repay Helb loans via Mpesa, Bank Deposit, Wave, World Remit, Diaspora Payment methods
- Helb- This is all you need to know concerning helb loans; application, processing, disbursement, repayment and clearance