Pain for First Years joining university without Helb loans

Hundreds of thousands of 2020 Form Four leavers are staring at a bumpy ride to college and university, starting this morning, without funding for the Higher Education Loans Board (Helb).

A total of 128,073 students were placed in universities and 193,949 in colleges three weeks ago and a majority are still in the process of applying for Helb funding.

For students to apply for the loans, they must have an admission letter from the institution they will join and these were not available immediately after placement. 

According to Helb CEO Charles Ringera, the earliest first-year students can expect the funds in their accounts is early October. 

“We don’t know how many students will apply so we can’t start processing the money now. That can end up leaving out orphans and other deserving cases,” he said.  Money for continuing students, the CEO said, has already been sent to their accounts.

The first-time applicants have until the end of December to apply for the loans while second and subsequent applicants have until end of October.

The delayed funding for first-year student means their families, many already reeling under tough economic conditions wrought by Covid-19 pandemic, will struggle to raise the required tuition fees and upkeep. 

Some students will also have to find alternative accommodation off-campus since many institutions do not have enough hostels.

Starving students

Personal effects will further eat into family budgets as will the purchase of electronic devices like laptops which have become mandatory to support virtual learning. 

Helb gives loans to students studying in public and private universities as well as those in technical and vocational education and training institutions. 

In addition to the loans, the board also supports needy cases through bursaries. However, students in the past have protested delays in disbursement of funds.

In March, there were reports that some university students were starving after Helb delayed disbursements.
At Moi University, learners staged protests over the delays as they demanded cash to buy food, books, airtime, laptops, smartphones and photocopy their classwork.

Meanwhile, all university students are also starting at reduced funding after the board capped loans at Sh38,000, down from the previous Sh45,000 before Covid-19 as it tries to cover more learners. 

The minimum that a student can receive is Sh37,000 and the maximum is set at Sh60,000, depending on the need. Students in technical and vocational training institutions receive Sh30,000.

This came as the board warned students of fake social media accounts that might give them wrong information or even con them.

“Don’t get conned. There are lots of fake Helb social media accounts out there. Get information from our official social media pages: HELBpage (Facebook), @HELBpage (Twitter), TheHELBtube (YouTube) and Official Higher Education Loans Board (LinkedIn),” Mr Ringera said. 

Facing tough times

Through a students’ handbook, the board warns students against misuse of the money they are allocated. 

“Students are advised to exercise financial discipline and desist from diverting Helb funds for other uses as the loan is designed to be used for tuition, books and stationery, accommodation and subsistence.” 

Students under government sponsorship are funded by Sh70,000 capitation paid directly to universities and they are expected to meet the other costs using the loan they get from Helb. From the student’s Sh50,000 loan, Sh16,000 is paid in tuition fees. 

The board is facing tough times ahead after the government cut funding.

In the current financial year, National Treasury Cabinet Secretary Ukur Yatani slashed funding for university education from Sh94.9 to Sh76.3 billion. 

Helb will receive Sh15.8 billion, down from the Sh16.8 billion it received the previous year. 

The board has also seen a reduction of loan recoveries and Mr Ringera has warned that unless the National Treasury increases the allocation, more students will miss out on the funding. 

The reduced budget comes at a time when students joining universities and colleges has increased from the previous year. 

Increase tuition fees

Universities have been clamouring to increase tuition fees threefold from the Sh16,000 which was set in 1991 saying that they cannot sustain them. 

However, students have strongly opposed the move and threatened to go on strike last semester before the move was shelved. Fees for self-sponsored students have however been rising over the years.

Meanwhile, the Kenya Universities and Colleges Central Placement Service opened the portal for inter-institutional transfers on Wednesday last week.

This had been directed by Education Cabinet Secretary George Magoha when he released the placement results.

Students who are not happy with the institutions they have been placed in have until the end of the month to apply for a transfer. 

The transfer must be endorsed by both the university or college where the applicant has been placed and the one they wish to transfer to. The student must also meet the cut-off points and minimum requirements.

To avoid delays, both the receiving and releasing institutions have be given a maximum of seven days after a transfer request is placed to endorse or reject it.

“While applying, a student can retain the same course but change institution or change both course and institution. A processing fee of Ksh 1,000 will be charged and should be paid only after the system prompts you to pay,” instructions on the transfers read.  

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