159000 Students To Miss HELB This Year
The Higher Education Loans Board (HELB) has mentioned that due to the National Treasury budget cut amid financial crisis in the country, over 140,000 university students are set to miss out on funding.
The National Treasury has allocated the Board a sum of Sh14.8 billion which is against the target of Sh20.5 billion by the Board.
This move has come as a result of many beneficiaries defaulting the loan this affecting other students banking on this fund.
The HELB CEO, Charles Ringera has said only a total of 341,000 students would benefit out of a whole lot of 500,000 students who applied. This leaves a total of 159,000 students who will not benefit from from the fund.
Ringera has mentioned a reduction in the number of beneficiaries considering the budgetary allocation which is less by Sh5.7 billion fro the budgetary demands.
“This year, our budget is about Sh14.8 billion to fund about 341,000 students. However, we got a demand of about 500,000 students which means we are not able to meet the entire demand,” said Ringera.
“We have a shortfall of about 140,000 students who we have allocated zero for this year, hoping next year might be better all requiring about Sh5.7 billion,” said Ringera.
The CEO lamented of a large number of graduates who have not started servicing their loans. The number is about 107,000 with the number rising in July of every year.
Ringera further stated that the repayment rate is now at around 68 percent but promised that they would like to increase it to 76 percent by the end of the year.
“We won’t say students have defaulted, but we will say they are late in terms of payments. The current number is about 107,000 of those who have delayed and who carry about Sh8.7 billion,” Said Mr. Ringera.
The HELB CEO further decried a number of universities in the country that are facing a financial crisis hence hindering smooth operations and service delivery.
Ringera has also mentioned that they are collaborating with counties and corporate bodies to mobilize resources that will help avert the crisis experienced in Universities.
Ringera made this statements while addressing the media in Naivasha during the launch of the HELB M-Pesa Wallet Payment Solutions that will see HELB beneficiaries receive their loans via M-Pesa.
The CEO further smeared Safaricom Foundation with praises for coming up with an application that will easen loan disbursement and repayment.
159000 Students To Miss HELB This Year
