HELB Responds To Reports Of 12% Interest Rate On Student Loans
The Higher Education Loans Board (HELB) has dismissed claims that university students will be charged a 12 per cent loan interest rate and graduate with debts exceeding Ksh4 million, terming the reports inaccurate and misleading.
HELB said the publication had created unnecessary anxiety among current and prospective students, parents, institutions of higher learning and the general public by misrepresenting the current student financing model.
The board stated this in a statement issued on Friday, August 7, following The Standard’s front-page story titled Degrees of Debt.
“The publication contains factual inaccuracies regarding HELB’s student financing model, loan interest rates, and the level of indebtedness that students are likely to incur,” the board said.
“These claims have caused unnecessary anxiety among current and prospective students, parents, institutions of higher learning, and the general public.”
The board clarified that the interest rate for undergraduate university students, TVET trainees and KMTC students remains at four per cent per annum, contrary to claims that it had been increased to 12 per cent.
HELB also disputed reports that medical students could graduate with debts exceeding Ksh4.2 million, saying the figures do not reflect the current funding framework.
According to the board, the maximum cumulative HELB funding available to a medical student is Ksh2,308,116, subject to eligibility, programme duration and annual means testing under the Student-Centred Funding Model.
“The figure of Ksh4.2 million published by the newspaper does not represent HELB financing and does not reflect the actual funding available to beneficiaries under the current model,” the board said.
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The clarification follows reports claiming the government was planning to abolish undergraduate scholarships and replace them with loan financing carrying a 12 per cent interest rate.
This move raised concerns that graduates would leave university burdened by huge debts.
The reports also suggested the proposed changes could discourage students from low-income families from pursuing higher education and undermine equitable access to universities.
However, HELB maintained that its mandate remains to ensure no deserving Kenyan is denied access to higher education because of financial constraints through affordable financing based on students’ level of need.
The board said it continues to implement the government’s student-centred funding framework, which allocates financial support according to individual need while promoting equitable access to higher education.
HELB added that any future policy or operational changes affecting student financing would be communicated through its official channels.
They also urged students, parents and institutions to rely on verified information.
HELB Responds To Reports Of 12% Interest Rate On Student Loans
