Nairobi, August 8, 2023 - The Higher Education Loans Board (HELB) has introduced a new requirement for students seeking funding from the institution. CEO Charles Ringera has announced that applicants must now undergo a test before submitting their loan application, and they must achieve a minimum score of 80% on the test to be eligible for financial support.
Innovative Approach to Loan Allocation
In a recent Twitter space hosted by the media on Monday, August 7, Charles Ringera, the CEO of HELB, unveiled the new testing mechanism aimed at ensuring students comprehend the terms and conditions associated with the financial assistance. The test will serve a dual purpose – not only educating students about the loan and scholarship terms but also categorizing them based on their scores. These categories will determine the amount of money allocated for scholarships and loans.
Empowering Students Through Knowledge
"The test aims to create an awareness that this is a loan and scholarship and details the payments you will have to make depending on the classification that you are in," explained Ringera, who boasts a background in banking. The introduction of this test underlines the board's commitment to empowering students with the necessary knowledge before they commit to the loan process.
Uniform Requirement for All Applicants
The new testing requirement extends to both new applicants and continuing students, including those funded under the previous model. Despite having received funding in the past, continuing students are expected to take the test as part of the updated loan application process.
Promoting Responsible Loan Repayment
Ringera addressed the issue of loan comprehension, citing cases where students struggled to understand the terms of their loans, including the rationale behind the one-year grace period for loan repayment. The CEO clarified that the grace period is designed to aid graduates in transitioning and establishing themselves in the job market.
Ringera stressed the importance of loan repayment, noting that the financial sustainability of HELB relies on it. "If you don't pay for the loans, your siblings behind you will not access the loans. 33% of our budget comes from loan repayments," he emphasized. He urged applicants to fulfill their obligations, offering the flexibility of repaying loans in manageable installments, starting as low as Ksh500.
Beyond Loan Repayment: Embracing the Informal Sector
In addition to encouraging responsible loan repayment, Ringera advised students to consider employment opportunities in the informal sector post-graduation. He emphasized that embracing the informal sector could provide valuable avenues for employment and income generation.
As HELB introduces this novel testing approach, it seeks to foster a culture of informed financial decisions and responsible loan management among students, ultimately contributing to their academic success and financial well-being.