The Higher Education Loans Board (HELB) has announced an 80% waiver on penalties for loan defaulters who opt to clear their outstanding balances in a lump sum.

In a statement issued on Monday, March 24, HELB urged beneficiaries to take advantage of the offer, which can be accessed through various communication channels.

"Settle your HELB Loan in a lump sum and enjoy an 80% waiver on accrued penalties. Simple, rewarding, and just a call, DM, or email away!" the statement read. However, HELB did not specify an expiry date for the waiver.

This is not the first time HELB has introduced such waivers. In 2022, the board offered a 100% penalty waiver to encourage loan repayment in the wake of economic hardships caused by the Covid-19 pandemic. The waiver, initially set to run until April 2022, was later extended to June of the same year.

HELB CEO Charles Ringera previously acknowledged the impact of economic challenges on loanees, citing unemployment and tough business conditions as key factors affecting repayment.

Similar waivers have been issued in the past, including in 2018, as part of efforts to boost compliance and encourage timely loan repayment among beneficiaries.