HELB Reduces Loans Offered To University Students

The Higher Education Loans Board (HELB) has reduced the average loan offered to university students by Ksh.8,000.

Charles Ringera, HELB CEO, said that they had reduced the loans from Ksh.45,000 to Ksh.37,000 due to the effects of the Covid-19 pandemic.

Ringera added that graduates had defaulted on their loans after many of the beneficiaries had been rendered jobless.

“Covid-19 has negatively impacted household incomes. Ordinarily, 80 percent of students admitted to universities would apply for HELB support but this year out of the 122,000 students placed in universities, the applications now stand at 155,000.

This indicates that the number of parents who would not necessarily have intended their children to borrow has now applied to get a loan due to loss of income,” Ringera stated.

Ringera also warned students in the second semester of their academic year and in the fourth year that they may miss out on loans despite making applications. He stated that the money had been used for other social needs.

The CEO regretted making the decision, adding that needy students would be most affected.

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