The Higher Education Loans Board (HELB) CEO Charles Ringera now says that students seeking funding from the institution will sit for a test before submitting their application.
Speaking on a Twitter space held by Kenyans.co.ke on Monday, August 7, Ringera explained that the test aims to enlighten students on the terms and conditions of the funding.
HELB will also use the assessment to score students into various categories, determining the amount of money allocated for scholarships and loans.
Students are required to score at least 80 per cent on the test before submitting their application.
“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,” Ringera, a banker by profession, stated.
Further, he maintained that continuing students will also have to sit the test despite being funded under the old model.
Why Sit the Test
Ringera highlighted instances where students struggled to comprehend loan terms, highlighting situations where applicants questioned the rationale behind HELB offering a one-year grace period for loan repayment.
The HELB CEO elaborated that the intention behind the one-year grace period was to assist students in transitioning and establishing themselves after graduation.
“These are the conditions of the loan. If you don’t pay for the loans, your siblings behind you will not access the loans. 33 per cent of our budget comes from loan repayments,” Ringera, a former Central Bank of Kenya regulator, explained.
“If we relax the model more Kenyans will lack the funding like last year because we ran out of budget,” he added.
Therefore, he encouraged Kenyans to fulfil their obligations, highlighting that applicants had the option to repay their loans in instalments, starting from Ksh500 gradually.
Ringera further urged Kenyans to embrace the informal sector that also offers employment opportunities for individuals post-graduation.
