The Higher Education Loans Board (HELB) is a state agency that provides loans to students in higher education institutions to help them cover their tuition fees, accommodation, and other expenses.
The amount of money you can receive from HELB per semester depends on various factors, including your level of study, the type of loan you apply for, and your financial need.
The amount of money you can receive from HELB per semester varies depending on your category of study and the type of loan you apply for. For instance, government-sponsored students can receive up to Ksh. 60,000 per year, while self-sponsored students can receive up to Ksh. 40,000 per year.
Key Takeaways
- The amount of money you can receive from HELB per semester depends on various factors, including your level of study, the type of loan you apply for, and your financial need.
- HELB provides loans to students in different categories, including undergraduate, diploma, and postgraduate students.
- The amount of money you can receive from HELB per semester varies depending on your category of study and the type of loan you apply for.
Average Amount Given by HELB Per Semester
The amount of loan awarded by HELB varies depending on the factors discussed above. However, the average amount given by HELB per semester is between Ksh. 37,000 and Ksh. 60,000.
The loan attracts an interest of 4% per annum, and students are required to repay their loans on completion of their studies.
Loan allocation process is competitive, and not all applicants receive the full amount they apply for. Students are advised to apply for loans at least one month before the opening date to allow time for processing and remittance.
What is HELB?
HELB stands for Higher Education Loans Board. It is a state corporation that was established in 1995 under the Higher Education Loans Board Act. Its primary mandate is to provide affordable loans to Kenyan students pursuing higher education in local and international institutions.
HELB is a government agency that operates under the Ministry of Education. It is governed by a board of directors appointed by the Cabinet Secretary for Education.
Purpose of HELB
The primary purpose of HELB is to provide financial support to Kenyan students who are unable to pay for their higher education. HELB provides loans to students pursuing diploma, undergraduate, and postgraduate studies.
HELB loans are meant to cover tuition fees, accommodation, and other related expenses. The loans are repayable upon completion of studies, and the repayment period is usually ten years.
HELB offers different loan products to cater to the different needs of students. The loan products include:
- Diploma loans
- Undergraduate loans
- Postgraduate loans (Masters and PhD)
The loan amounts vary depending on the level of study and the financial need of the student. The loan amounts are reviewed periodically to ensure they are in line with the prevailing economic conditions.
HELB Loan Allocation
When it comes to financing higher education in Kenya, the Higher Education Loans Board (HELB) is a go-to option for many students.
The loan allocation process can be confusing, but understanding the factors that influence the amount of loan awarded can help you make informed decisions when applying for HELB loans.
Factors Influencing HELB Loan Allocation
HELB allocates loans based on several factors, including:
- Financial need: The amount of loan awarded depends on the level of financial need demonstrated by the student. Students from low-income families are given priority.
- Level of study: The amount of loan awarded varies depending on the level of study. For example, students pursuing diploma courses receive less than those pursuing undergraduate courses.
- Course of study: The amount of loan awarded also depends on the course of study. Courses that require expensive equipment or materials may attract higher loan amounts.
- Repayment history: HELB also considers the repayment history of previous loans when allocating new loans. Students who have defaulted on previous loans may receive lower loan amounts or may not qualify for loans at all.
Applying for HELB Loan
If you are a Kenyan student pursuing higher education, you can apply for a loan from the Higher Education Loans Board (HELB) to help finance your studies. Here is what you need to know about the application process.
Eligibility for HELB Loan
To be eligible for a HELB loan, you must meet the following requirements:
- You must be a Kenyan citizen.
- You must be enrolled in a recognized institution of higher learning.
- You must have a valid admission letter from the institution you are attending.
- You must have a valid Kenyan national ID.
- You must have a bank account in your name.
There are different loan categories based on the type of institution you are attending and your mode of study.
For example, there are loans for students in public or chartered private universities, as well as loans for self-sponsored, parallel, and module II students pursuing a Bachelor’s degree.
Application Process
To apply for a HELB loan, follow these steps:
- Visit the HELB website and create an account.
- Log in to your account and fill out the loan application form.
- Upload the required documents, including your admission letter, national ID, and bank account details.
- Submit your application and wait for a response from HELB.
It is important to note that the loan application process is competitive, and not all applicants will be approved.
Loans are disbursed in two equal installments per academic year, with the first disbursement being made in the first semester and the second disbursement being made in the second semester.
The amount you receive will depend on your level of need and the category of loan you are applying for.
HELB Loan Repayment
If you have taken out a loan from the Higher Education Loans Board (HELB), you will be required to repay it after completing your studies.
Here are some important things you need to know about HELB loan repayment.
Repayment Terms
The repayment period for a HELB loan is usually one year after you complete your studies. However, you can apply for a grace period of up to one year if you are unable to start repaying immediately after graduation.
During this grace period, you will not be required to make any payments, but interest will continue to accrue on your loan.
The minimum monthly repayment amount for a HELB loan is Kshs. 1,500. You can choose to pay more than the minimum amount to reduce the overall interest charged on your loan. You can also make lump sum payments to reduce the outstanding balance of your loan.
Consequences of Defaulting
If you fail to make your HELB loan repayments on time, you will face serious consequences. The board works in collaboration with Credit Reference Bureau (CRB) to blacklist defaulters. This means that you will be unable to access credit from any financial institution in Kenya until you clear your HELB loan.
In addition, the board will charge you a penalty fee of 5% of the outstanding balance for every month that you are in default. This penalty fee is in addition to the interest charged on your loan.
To avoid defaulting on your HELB loan, it is important to make your repayments on time and in full. If you are having difficulty making your repayments, you can contact HELB to discuss your options. The board may be able to offer you a repayment plan that is more manageable for you.
In Summary
The Higher Education Loans Board (HELB) provides financial support to Kenyan students attending local and international higher education institutions. The amount of money given to students by HELB varies depending on the level of education they are pursuing.
Undergraduate students under direct entry are given a maximum of Ksh60,000 per year, with Ksh4,000 sent directly to the university.
This means that each semester, undergraduate students receive Ksh26,000 from HELB. Diploma students, on the other hand, receive Ksh12,094.02 if they are classified as vulnerable students.
Masters students can receive up to Ksh200,000 per year from HELB, with Ksh40,000 sent directly to the university. Students pursuing postgraduate diploma courses can receive up to Ksh100,000 per year, with Ksh20,000 sent directly to the university.
It is important to note that the funds disbursed by HELB are meant to cover tuition fees, accommodation, and subsistence. Students are expected to use the funds responsibly and to repay the loans upon completion of their studies. Failure to repay the loans can result in legal action being taken against the student.
Overall, HELB plays a critical role in enabling students to access higher education in Kenya. By providing financial support to students, HELB helps to bridge the gap between the cost of education and the ability of students to pay for it.
Frequently Asked Questions
What is the maximum amount of HELB loan per semester?
The maximum amount of HELB loan per semester is KES. 60,000 for undergraduate students and KES. 40,000 for TVET students. The loan is disbursed in two equal installments per academic year.
How much does HELB give to diploma students?
HELB gives diploma students a maximum of KES. 40,000 per academic year, which is disbursed in two equal installments per semester.
What is the amount of HELB loan for certificate students?
HELB does not provide loans to certificate students. The organization only provides loans to diploma, undergraduate, and TVET students.
How much does HELB give to TVET students?
HELB gives TVET students a maximum of KES. 40,000 per academic year, which is disbursed in two equal installments per semester.
What is the process for applying for HELB loan at KMTC?
To apply for a HELB loan at KMTC, you need to visit the HELB website and create an account. You will then be required to fill in an application form and attach the necessary documents. The documents include a copy of your national ID, admission letter, and fee structure.
How much does HELB deduct from salary for loan repayment?
HELB deducts 4% of your salary for loan repayment if you are employed. If you are self-employed, you are required to make monthly payments of at least KES. 1,000.
