Helb extends amnesty to defaulters in diaspora

Students being served at the Higher Education Loans Board (Helb) offices last year. Helb has extended a one-month loan repayment amnesty and an 80 per cent waiver on all penalties for loans paid in a lump sum. FILE PHOTO | NATION MEDIA GROUP 

In Summary

• Since 1975, Helb has received Sh53 billion disbursed to 482,000 students studying in public universities.
• So far 102,000 students have repaid loans worth Sh9.9 billion with another 111,630 currently servicing their loans worth Sh16.7 billion.

By JAMES KARIUKI
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Kenyans living in the United States will now enjoy an 80 per cent penalty waiver on their Helb university loans if they pay what they owe in a lump sum within the next one month.

The extension was communicated to Kenyans living in the US by Helb chief executive officer Charles Ringera and chairman Charles Wachira, who also promised to open an account within Kenya’s embassy in Washington, DC.

CREDIT REFERENCE BUREAU

Ringera said borrowers should establish their loan balances by logging onto the Helb website, adding that those who pay their outstanding balances will have their names excluded from loan defaulters. Helb loan defaulters are forwarded to the Credit Reference Bureau (CRB).

Loan defaulters mentioned in the CRM cannot get bank loans, government jobs and contracts. Applicants are required to produce a Helb clearance certificate as a prerequisite to access any of the above services.

Helb also imposes a hefty Sh5,000 penalty for each unpaid month since the maturity of the loan, according to information posted on its website.

The Helb team touring US cities said even Kenyans who benefited from Helb loans and are planning to return home to contest for political seats stand barred unless they prove they have cleared their loans or are servicing them.

NOWHERE TO HIDE

Helb has also engaged four credit bureaus, which are compiling a list of all Kenyans who have defaulted on Helb loans.

The payments can be made via credit card, M-Pesa, Airtel Money, Western Union or direct bank deposits.

Since 1975, Helb has received Sh53 billion disbursed to 482,000 students studying in public universities.

So far 102,000 students have repaid loans worth Sh9.9 billion with another 111,630 currently servicing loans worth Sh16.7 billion.

Helb says it is pursuing 74,500 students who have completely defaulted on their loan repayments amounting to Sh8.6 billion since the fund was established.

The CEO noted that for the government to expand university education, Helb must push beneficiaries to repay their loans to fund the education of about 209,000 students now enrolled at 68 private and public colleges and universities.