Almost a total of 75,000 students who rely heavily on state support, according to the Higher Education Loans Board (HELB), may be unable to access the mo cash.
Recent announcement from HELB CEO Charles Ringera, is that thousands of students who benefited from the money have failed to repay nearly Ksh10 billion, putting the Board in financial trouble.
The early beneficiaries, as per to Ringera, have until June to return their loans, when the amnesty window closes.
The HELB board is in a terrible situation, according to Ringera, because 107,000 students have defaulted on their loans, making it impossible to support students who are currently in need of financial aid.
As per to the HELB CEO, there is an issue with students migrating as well as those who have publicly refused to pay even after a waiver was issued.
In his statement, he indicated “Some of them have suffered difficulties such as Covid, and unemployment and underemployment are also very significant issues for them.” But, particularly in Northern America, we’ve seen a trend of people looking towards better pastures.”
He added, “The law says we charge your account a penalty of Ksh5,000 for being in default if you don’t repay the loan or come for a talk with us.”
HElB defaulters should take advantage of the penalty waiver period, which ends on June 30.
Mr.Ringera published a statement on March 1 declaring that Helb has agreed to waive all fines for all loanees.
As from March 1 to April 30, 2022, the waiver period was in effect. The new campaign, according to Ringera, is a sign of thanks to the recipients for their efforts in repaying their loans despite the pandemic’s severe economic conditions.
The move above is also meant to encourage borrowers to make lump-sum payments during the grace period.
Mr .Ringera underlined the necessity of recipients repaying their loans so that the monies might be used to help other students in need.