The Higher Education Loans Board has declared that minors who sat for their KCSE but are below the age of 18, will now to be able to be financed by HELB as well. It is a new policy that was adopted in the New Financing Model introduced under President William Ruto’s administration.
Expanded Access for 2024/25 Academic Year
HELB has opened its portal for the 2024/25 first-time loan applicants or students joining institutions in September 2024. This becomes a significant shift, ensuring the inclusivity of all students regardless of age. Before, lack of a national ID barred many students below 18 who had completed their secondary education.
How to Apply Without a National ID
While speaking on the same matter, HELB CEO Charles Ringera said minors can now apply using their KCSE index number along with a Post Bank account. This is after entering into a partnership whereby Post Bank is supposed to open banking services to minors so that it allows them to participate in loan application.
Comprehensive Financial Literacy Education
HELB provides information on financial literacy, which is contained on the onboarding page, that all applicants must go through to assist in decision-making. Thereafter, students must read through the material and answer a set of ten questions. Students have to attain a minimum pass mark of 70% to proceed with their application for loans and scholarships.
Other Requirements for HELB Application
Applicants must have:
- A valid email address
- Telephone number
- KCPE and KCSE index numbers
- Passport-sized photo
- Details of parents, guardians, and guarantors
Scholarship and Loan Availability
The government has promised to offer scholarships and loans to 130,485 students in public universities, while another 9,662 students in private universities are going to be financed through loans. Applications are open through the official HELB website, now migrated to Higher Education Financing.
HELB’s Financial Year 2023/24 Performance
In the financial year 2023/24, HELB financed 606,329 students at a total disbursement of KSh 33.45 billion. Currently, the outstanding loans are KSh 41.73 billion for 710,107 borrowers. Shockingly, over 298,000 loans have been defaulted; HELB is now urging defaulters to pay promptly.
Budget Cuts Impacting HELB
Among the austerity measures resulting from rejection of the finance bill, former treasury CS Njuguna Ndung’u announced a budget cut in HELB by KSh 3.3 billion. The cuts are part of broader measures to curb the deficit following the rejection of the Finance Bill, 2024.
Implications of Loan Default
HEBL’s credit policy indicates that in the event of loan default, debt is shared equally among guarantors; upon the death of the loan beneficiary, however, guarantors are released from obligation. Only 443,501 beneficiaries are currently active in repaying their loans, which accounts for KSh 64.01 billion.