HELB had indicated early in the year that all student Loan for the year 2020 will be withheld and only be disbursed when the colleges and campuses re-open for the fresh academic year in 2021.
In a status they posted on the social media, the financier noted that following the closure of learning institutions early in the year to curb the spread of Covid-19, pending payment will be made upon re-opening which has been set by the Ministry of Education for January next year.
The loan application process through the HELB Portal had been opened for about 300,000 students in universities and colleges back in May this year. About Sh12.3 billion had been set aside for this activity.
Helb announced that for the very first time, subsequent loan applications was done seamlessly through the Helb App.
Eligible Students to Apply for HELB
The board had noted in January this year that more than 113,953 eligible students will not get loans in the remainder of the current academic year.
The State agency missed its half-year collections target by around Sh100 million to collect Sh2.2 billion against the Sh2.3 billion target.
Helb is supposed to be a revolving fund where beneficiaries who have finished their studies pay back the loans to support a fresh group of students.
The agency said it is pursuing some 78,328 loan defaulters holding Sh7.7 billion as at December 31 last year. The past beneficiaries have not responded despite frequent threats of prosecution, credit bureau listings and deployment of specialised debt recovery agents.
For TVET Students, the government sends capitation of Sh30,000 to all annually. In addition to this, Helb sends each student Sh26,000 and another Sh14,000 for upkeep.
For university students, the figure was revised from Sh43,000 to Sh68,000.
Thousands of students who sat last year’s KCSE already know courses and universities they have been placed in and some have already been given a chance to gain admission.