The Higher Education Loans Board (HELB) has raised concerns that 75,000 students who heavily depend on State financing could miss out on the funds.
According to HELB CEO Charles Ringera, thousands of students who benefitted from the funds have failed to pay back nearly Ksh10 billion pushing the Board into a financial crisis.
Ringera says they have given beneficiaries up to June when the amnesty window expires to have repaid loans.
Ringera stated that HELB is facing a tough time as 107,000 students have defaulted on their loans, making it impossible to finance students who are currently in need of the money
The HELB CEO noted that there is a problem with students who are migrating as well as those who have blatantly refused to make payments even after they announced a waiver
Some of them have faced challenges such as Covid, unemployment and underemployment are also very real challenges to them. But we have also seen a tendency of migration for greener pastures, particularly in Northern America,” he stated.
If you don’t repay the loan or come for a discussion with us, the law says we charge your account a penalty of Ksh5,000 for being in default and also not being where you are,” he added.
Ringera called on the defaulter to take advantage of the penalty waiver period which expires on June 30.
On March 1, Ringera issued a statement, announcing that Helb resolved to give a 100 per cent penalty waiver to all loanees.
The waiver period ran from Tuesday, March 1 to April 30, 2022. According to Ringera, this new campaign is an appreciation extended to the beneficiaries for their efforts in repaying their loans despite the hard economic times occasioned by the ravages of the pandemic.
The move is also aimed at encouraging loanees to make lump sum repayments during the waiver period.
Ringera emphasized the need for beneficiaries to repay their loans to allow other needy students to also benefit from the funds.
It is important for all beneficiaries to honour their obligation as stipulated in the loan application terms and conditions so as to empower the dreams of another needy student,” Ringera reiterated.