HELB, the Board of Higher Education Loans, expressed concern over the high demand for student loans, while those benefiting from billions of money.
As a result of the above situation the state has given such loans to this board which are insufficient to support the students in universities and secondary training institutes across the country.
In this fiscal year ending June, the Board of Higher Education Loans had estimated that 236,555 university students would apply for loans under an estimated consumption of Ksh 10.2 billion.
They ended up with 269,000 applicants. Helb estimated that approximately 162,147 continuing students would apply for education loans worth $7 billion, but the number exceeded 14,853, while the number of new applicants was 92,000, up from an estimated 74,408, giving the board the amount allocated to students. was forced to reduce.
Helb, through its chief executive officer Charles Ringera, attributed the increase in applications to the pandemic’s negative effects on the economy, saying some students had taken longer to study.
According to Ringera, the board tinkered with the amount given to students (which reduced from ksh 42,000 to Ksh 40,000) but was still unable to fund 75,000 applicants due to a budget deficit of 3.2 billion.
Also non-funded students have not been considered in the supplementary budget.
With students in technical and vocational education and training institutes, the number of applicants increased from the estimated number to 37,110, from the original 80,273.
The board had requested Shs 22 billion from the exchequer, but it got only Rs 11.3 billion. It was then to raise Sh4.3 billion from debt recovery.
Debt recovery.
The Board of High Debt may find itself in a similar situation in the next financial year as budget proposals tabled before Parliament two weeks ago did not focus on additional funding despite a rise in the number of secondary school dropouts.
It is also expected that more students will join the university and tweets this year, putting further strain on Helb’s finances.
Beginning in March 2022, Helb removed the penalty on loans for past beneficiaries, who would pay off their balances in a campaign aimed at raising funds for the board.
The recovery amnesty campaign will end on April 30.
According to Mr Ringera, about 3,572 beneficiaries had paid 202 million by the end of March, although the target is to recover one billion shillings.
Also Kenyans among the diaspora have taken better advantage of penal waivers to repay their loans.
