IMPORTANT INFORMATION ON LOANS OFFERED BY THE HIGHER EDUCATION LOANS BOARD
I. The Higher Education Loans Board (HELB) was established in 1995 under the Higher Education Loans Board Act CAP 213A of the Laws of Kenya
I. The Higher Education Loans Board (HELB) was established in 1995 under the Higher Education Loans Board Act CAP 213A of the Laws of Kenya
II. The Board is mandated by the Act to manage a fund for granting loans to students pursuing higher education in institutions recognized by the Commission for University Education (CUE).
III. Section six of the Act details the functions that the Board is legally bound to carry out. These include disbursement and Recovery of loans, sourcing of funds, among other
IV. The Board awards loans to both undergraduate and postgraduate students. For undergraduate, the Board offers two types of loans to students in public and private universities as follows:
(a) Loans for direct entry students; These are students joining public or private universities within the East African Community directly from high school either through the Joint Admission Board (JAB) or are self sponsored. This category of loans attracts interest at 4%p.a. The loans range from a minimum of Kshs 35,000 to Kshs. 60,000.00. Upon completion of studies the Board expects the beneficiary to repay the loan.
(b) Continuing Education Students; these are students who upgrade their academic qualifications by undertaking undergraduate studies while in employment. This category of loans attracts interest of 12% p.a.
V. The Act empowers the Board to recover mature loans from the beneficiaries upon completion of the university education. The law provides that a loanee shall be required, subject to and in accordance with this Act or any regulations made thereunder, within one year of completion of his studies or within such a period as the Board decides to recall its loan whichever is the earlier to commence repayment of the loan.
VI. It should be noted that loan repayment is not pegged on formal employment and hence beneficiaries should work towards self employment to ensure their loans are being serviced.
VII. Any default beyond the grace period attracts a monthly penalty of Kshs 5,000 as stipulated in the Act.
VIII. Loanees are urged to continually update the Board on their whereabouts and seek to discuss and implement the repayment plans, more so when one is in the informal sector employment. This will ensure that the account is activated and that the monthly penalty does not accrue.
BOARD SECRETARY/ CEO
BOARD SECRETARY/ CEO
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