Students will continue accessing HELB loans at an annual interest rate of four per cent, the loans board has said, rejecting reports that the cost of student financing had risen to 12 per cent.
The Higher Education Loans Board (HELB) said the reported increase was not true and that there had been no change to the rate charged on loans issued to undergraduate university students, TVET trainees and KMTC students.
The clarification follows information published on the front page of a local publication which HELB said gave an incorrect picture of its student financing model, loan rates and the amount of money students could owe after completing their studies.
The board said the information had raised concern among students, parents, higher education institutions and the wider public.
HELB said the current funding system continues to apply a four per cent annual interest rate to loans for undergraduate university students, TVET trainees and KMTC students.
“Contrary to the claims made in the publication, HELB has NOT increased its loan interest rate from 4% to 12%,” the board said.
“The interest rate applicable to HELB loans for undergraduate university students, TVET trainees and KMTC students remains at 4% per annum as provided under the current funding framework.”
The board said the rate is part of efforts to make higher education financing affordable while providing financial support to learners under the existing funding framework.
HELB has also launched a public awareness campaign to give students and their families correct information about available financing.
The campaign is intended to assure current and prospective students that financial support for higher education remains available.
The board urged learners not to be discouraged from pursuing further education because of the reports on loan costs.
Board disputes medical debt report
HELB also sought to correct claims about the amount of money medical students can accumulate in loans before completing their studies.
The board rejected reports that a medical student could graduate owing more than Sh4.2 million in HELB financing.
It said the highest cumulative amount available to a medical student under the current student-centred funding model is Sh2,308,116.
HELB, however, said the amount a student receives depends on several factors, including eligibility, the length of the programme and annual means testing.
The board said the Sh4.2 million amount reported in the newspaper does not represent financing provided by HELB.
It added that the figure does not show the actual level of funding available to beneficiaries under the current student-centred funding model.
HELB Chief Executive Officer Geoffrey Monari said the board remains committed to making higher education accessible through affordable financial support.
“HELB continues to implement Government policy aimed at expanding equitable access to higher education through affordable financing mechanisms that support students based on their level of need,” he said.
HELB asks public to verify information
With concerns emerging over the reported loan changes, HELB advised students, parents and institutions to seek information directly from the board's official communication platforms.
The board said its official channels should be used when checking details concerning student funding, loan products and policy changes.
HELB said relying on verified information would help prevent confusion over the financing available to learners.
It further stated that any changes to its policies or operations in future would be announced through its official communication platforms.
The board said affordable financing for higher education remains available under the current system, with the four per cent annual interest rate continuing to apply to loans for undergraduate university students, TVET trainees and KMTC students.
The latest clarification is aimed at reassuring learners and their families that there has been no 12 per cent increase in the interest rate charged on the affected HELB loans.