If you are a student in Kenya, you may be wondering how much you can get from the Higher Education Loans Board (HELB). The amount of money you can receive from HELB depends on various factors, including your level of study, the institution you are attending, and your financial need.
Here is a breakdown of the loan amounts you can receive from HELB:
Undergraduate Students
Undergraduate students can receive a maximum of Ksh. 60,000 per year from HELB. However, the amount you receive may be less depending on your financial need and the institution you are attending. In addition to the loan, you may also receive a bursary of up to Ksh. 8,000 per year.
Postgraduate Students
Postgraduate students can receive a maximum of Ksh. 200,000 per year from HELB. However, the amount you receive may be less depending on your financial need and the institution you are attending. In addition to the loan, you may also receive a research grant of up to Ksh. 50,000 per year.
TVET Students
Technical and Vocational Education and Training (TVET) students can receive a maximum of Ksh. 40,000 per year from HELB. However, the amount you receive may be less depending on your financial need and the institution you are attending.
It is important to note that the loan amount you receive from HELB is not a fixed amount and may vary depending on your individual circumstances. Additionally, the loan must be repaid with interest once you complete your studies.
What is HELB Loan?
HELB stands for Higher Education Loans Board, a body that provides loans and bursaries to Kenyan students pursuing higher education in public and private universities within the East African Community.
The loan is meant to help students cover their tuition fees, accommodation, and other related expenses. The loan is repayable with a 4% interest rate per annum.
Who is Eligible for HELB Loan?
To be eligible for the HELB loan, you must be a Kenyan citizen, enrolled in a public or private university within the East African Community, and have a valid admission letter. You must also meet the following criteria:
- Be registered with the National Identification Bureau and have a valid Kenyan ID card.
- Have a valid bank account.
- Be pursuing an undergraduate or postgraduate degree program.
- Have a good academic standing and maintain satisfactory academic progress throughout the course of study.
The amount of loan awarded varies depending on the level of need and the cost of the program. The maximum amount awarded is Kshs.50,000, and a bursary of Kshs.8,000 may be awarded out of this amount by HELB.
The loan is disbursed in two equal installments per academic year, and the first installment is usually paid directly to the university to cover tuition fees. The second installment is paid to the student’s bank account to cover other expenses.
Factors Affecting HELB Loan Allocation
When applying for a HELB loan, the amount you receive is not automatic and is based on several factors. Here are some of the factors that affect HELB loan allocation:
Level of Need
The level of need is one of the most important factors that determines how much loan you will receive. The higher your level of need, the more loan you are likely to receive.
The level of need is determined by your financial background, including your family’s income, the number of dependents, and other financial obligations.
Type of Loan
The type of loan you apply for also determines the amount you can receive. For example, undergraduate loans have different allocation bands than TVET loans.
The maximum loan amount for undergraduate loans is Kshs 60,000, while for TVET loans, it is Kshs 40,000.
Academic Performance
Your academic performance can also affect the amount of loan you receive. If you have a good academic record, you may be eligible for a higher loan amount.
This is because HELB considers your academic performance as an indicator of your ability to repay the loan after completing your studies.
Co-guarantors
HELB requires that you have co-guarantors when applying for a loan. The number and type of co-guarantors you have can also affect the amount of loan you receive.
For example, having a guarantor who works in a reputable organization can increase your chances of getting a higher loan amount.
Repayment History
If you have previously received a HELB loan and have a good repayment history, you may be eligible for a higher loan amount. This is because HELB considers your repayment history as an indicator of your ability to repay the loan after completing your studies.
HELB Loan Repayment
Repayment Process
Once you have completed your studies and secured employment, you are required to start repaying your HELB loan.
The repayment process starts within one year of completion of studies or within such a period as the Board decides to recall the loan, whichever is earlier.
You can make your repayments through various channels, including:
- Direct debit
- M-Pesa PayBill
- Bank deposits
- Cheques
It is important to note that only HELB and not your employer can confirm your loan repayment status. HELB shall confirm loan repayment completion by issuing a clearance certificate.
Interest Rates
The interest rate charged on HELB loans is 4% per annum, which is fixed for the entire repayment period. This means that the amount of interest you pay on your loan will not change throughout the repayment period. The interest rate is charged on the outstanding balance of the loan.
You can use the HELB Loan Repayment Calculator to calculate your monthly repayments, repayment period, and interest charged based on the loan amount and the interest rate of 4%. It is important to note that failure to repay your HELB loan on time attracts a penalty of 5% of the outstanding balance per month.
HELB Loan Penalties
When you take out a HELB loan, it is important to understand the penalties that come with it. Failing to repay your loan on time can lead to additional charges, making it harder for you to clear your debt.
Here’s what you need to know about HELB loan penalties:
Interest Rates
The current interest rate for HELB loans is 4% per annum. This means that if you take out a loan of Ksh. 50,000, you will be required to pay Ksh. 2,000 in interest every year until you clear your debt.
It is important to note that interest is charged on the outstanding balance of your loan, which means that the longer you take to repay it, the more interest you will accumulate.
Penalties
If you fail to make your loan payments on time, HELB will charge you penalties. These penalties are designed to encourage borrowers to repay their loans promptly.
The exact amount of the penalty will depend on how much you owe and how long you have been in default.
HELB charges a penalty of 5% of the outstanding loan balance for every month that your loan remains unpaid. This means that if you owe Ksh. 50,000 and you are one month behind on your payments, you will be charged Ksh. 2,500 in penalties.
If you continue to default, the penalties will continue to accumulate, making it harder for you to clear your debt.
Waivers
HELB occasionally offers penalty waivers to encourage borrowers to clear their debts. These waivers can be a great way to reduce the amount you owe and get back on track with your loan payments.
However, it is important to note that these waivers are not guaranteed, and you should not rely on them to clear your debt.
In conclusion, it is important to understand the penalties that come with HELB loans. Interest rates and penalties can add up quickly, making it harder for you to clear your debt.
Make sure to repay your loan on time to avoid these charges and consider taking advantage of any penalty waivers that may be offered.
In Summary
In summary, the amount of HELB loan a student can receive is determined by their level of need and the cost of training at the university. According to the current Cost Sharing Policy, a student is required to pay Kshs.50,000/- per year to train at a public university. HELB can award a maximum loan and bursary of Kshs.50,000/- and a bursary of Kshs.8,000.
The loan amount awarded ranges between Kshs.37,000/- and Kshs.60,000/- based on the level of need. The loan attracts an interest rate of 4% p.a, and the students are required to repay their loans on completion of their studies.
HELB loans are not automatic and have to be applied for. The disbursement of tuition loans to universities and technical vocational educational and training (TVET) has been initiated by the Higher Education Loans Board (HELB). Students studying medicine, veterinary medicine, pharmacy, engineering, architecture, built environment, and agriculture receive different loan amounts.
It is essential for students to notify HELB if there are any changes in their academic status, such as deferment, suspension, or discontinuation. Failure to do so may result in penalties or legal action.
Frequently Asked Questions
What are the requirements for applying for HELB loan?
To apply for a HELB loan, you must be a Kenyan citizen enrolled in a recognized institution of higher learning in Kenya or abroad. You must also have a valid admission letter from the institution and a valid national ID card. Additionally, you must have a good credit rating and meet the minimum academic requirements set by HELB.
How do I apply for a HELB loan?
To apply for a HELB loan, you need to create an account on the HELB portal and fill out the application form. You will need to provide personal details, academic information, and financial information. You will also need to upload scanned copies of your admission letter, national ID card, and other relevant documents.
Is the HELB portal open for applications?
The HELB portal is usually open for applications twice a year, in January and July. However, the exact dates may vary, so it’s important to check the HELB website for updates. You can also follow HELB on social media to get updates on application dates and other important information.
How much does HELB loan cover per year?
The amount of money you can get from HELB depends on your level of study, the cost of tuition, and other factors. Generally, undergraduate students can get up to Ksh. 60,000 per year, while postgraduate students can get up to Ksh. 100,000 per year. However, this amount may vary depending on your individual circumstances.
Is the HELB loan given per semester or per year?
The HELB loan is usually given per year, but it may be disbursed in two or more installments depending on your institution’s academic calendar. The loan is meant to cover your tuition fees, accommodation, and other related expenses for the academic year.
What is the amount of HELB bursary?
The amount of HELB bursary varies depending on your level of study, financial need, and other factors. Generally, undergraduate students can get up to Ksh. 8,000 per year, while postgraduate students can get up to Ksh. 20,000 per year. However, this amount may vary depending on your individual circumstances.
