Sh46bn student debt huge burden for Helb
Funding higher education is a major challenge that threatens to lock out many deserving students. As a significant majority of Kenyans cannot afford university education, a student loan and scholarship scheme is necessary. This is the most effective way to ensure access to this social equaliser, as students in the same programmes are entitled to the same amount paid from this revolving fund.
Students get admitted to the programmes they qualify for, irrespective of their families’ social status. With their financial needs, including tuition and accommodation catered for, even the ones from the poorest backgrounds have no justification for failure to achieve their academic goals.
The Higher Education Loans Board (Helb) has been a reliable source of loans for university and tertiary college students. However, for nearly three decades, the Helb has been struggling to ensure that all beneficiaries repay their loans. It would not be so much of a headache if they could all get jobs on graduation.
The reality, however, is that many graduates cannot immediately secure employment and, therefore, cannot repay their loans. A monumental challenge for the agency is that some 380,000 students are not repaying their loans. The outstanding debts amounting to a staggering Sh46 billion are crippling the Helb’s ability to fund new learners.
The debt remains a private contractual dispute with the individual borrowers. Unable to effect criminal arrests, as this is a civil matter, Helb relies on administrative and persuasive measures such as public appeals and the listing of defaulters with the Credit Reference Bureau.
The agency also repeatedly urges defaulters to repay. The huge number of defaulters is an insurmountable civil burden for Helb. Possible recovery measures include public appeals, the CRB listings, and the hiring of debt collectors at borrowers’ cost.
The beneficiaries ought to repay their loans so that the revolving fund can help other needy students. The agency should also explore more innovative ways to ensure compliance.
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