HELB offers 80 per cent penalty waiver to loan defaulters who clear their debt in full
HELB has periodically introduced such waivers to encourage loan repayment among former beneficiaries who have struggled to meet their financial obligations.
It is a sigh of relief for loan defaulters as the Higher Education Loans Board (HELB) introduces an 80 per cent waiver on accrued penalties for those who opt to clear their debts in full.
In a notice issued on Monday, HELB encouraged beneficiaries who have fallen behind on payments to take advantage of the offer by reaching out to the board through its various communication channels.
More To Read
- HELB boss reveals why 40 per cent of disbursed funds fail to reach university students on time
- Helb disburses Sh1.56 billion in tuition, upkeep loans after Ruto’s order
- Audit reveals inefficiencies, management flaws in new university funding model
- Former Universities Fund CEO Geoffrey Monari appointed new Helb boss
"Settle your HELB Loan in a lump sum and enjoy an 80 per cent waiver on accrued penalties. Simple, rewarding, and just a call, DM, or email away!" the statement read.
While the waiver presents an opportunity for defaulters to reduce their financial burden, the notice did not indicate when the offer would expire.
HELB has periodically introduced such waivers to encourage loan repayment among former beneficiaries who have struggled to meet their financial obligations.
In March 2022, the board provided a 100 per cent waiver on penalties to cushion borrowers from the economic hardships that followed the Covid-19 pandemic.
Initially set to run for one month, the waiver period was later extended by two more months, ending in June 2022.
At the time, HELB Chief Executive Officer Charles Ringera explained that the move was aimed at supporting defaulters who were willing to repay their loans despite economic challenges.
"Due to the Covid-19 pandemic, Kenya just like many other countries globally has experienced a slowing down of the economy over the last 2 years," the statement said.
"We acknowledge that unemployment and underemployment as well as a challenging environment for loanees to start and run businesses, has affected HELB loan repayment."
A similar 100 per cent penalty waiver was also introduced in 2018 to boost repayments by encouraging lump sum settlements.
These initiatives are part of HELB’s ongoing efforts to ensure compliance among thousands of former students who have defaulted on their loan repayment plans.
Top Stories Today
