The Higher Educations Loans Board (HELB) is mandated with the responsibility of offering financial assistance to needy students.
I am a beneficiary of HELB loans during my campus years. Though little, I was amazed by how quick the interest grew.
The average amount most students are given today is roughly 45,000/= per year, and for four years it adds up to 180,000.
Now, can you imagine being told that you owe HELB a loan of up to 500,000 yet you only got 180,000? Hey, I know you want to challenge my understanding of mathematics, but listen, that interest rate is too way high very high indeed.
Before she was transferred to the Ministry of Sports, Amb Amina Mohammed threatened to arrest HELB loan defaulters – a move that angered most Kenyans.
The amount in question was 7.2 billion which according to most Kenyans is way below the level of corruption in the country.
Following the level of unemployment and the high standards of living in Kenya, most youths are now listed in the Credit Reference Bureau (CRB) making it even more difficult to access any loan and maybe re-pay HELB.
Maybe it’s time HELB should raise the loan limit, stop compounding the interest, cancel the penalties and give a 100% waiver to those willing to pay. Food For Thought!