Thee Higher Education Loan board(HELB) has warned out that 95,000 students will miss loans this year, due to budgetary cuts and non-performing loans. HELB CEO Ringera said most non-performing loans comes from unemployed Kenyans, and those who lost jobs due to the pandemic. HELB estimated a budget of sh.15.5 billion but will not get sh.12.8 billion,saying some students might drop out of school due to lack of funds.
"We hope to fund 450,000 students in both TVET and universities at a total cost of sh.12.8 billion. That means 95,000 students will go unfunded this year. They have just resumed their classes and we are worried on how we are going to manage the situation. That how the situation is since their is no revenue flowing into the country and people are employed, so they cannot pay their loans. "he said. The students who will benefit from the loan will get an average of sh.38,000 down from sh.45,000.
"For the TVET students, they are still receiving they are still receiving their average of sh.40,000. It's only we have reduced the number of students who are going to benefit," he explained. For new entrants students only 80,000 will benefit. The plan was to finance 110,000 students at a cost of 4 Billion.
News Hub Creator firstname.lastname@example.org