Government and Policy

HELB Explains Loans Repayment Timelines, Clarifies Listing Students On CRB

BY Getrude Mathayo · May 10, 2023 08:05 am

KEY POINTS

"It is not factual that we request the students to pay the loan before they complete their studies. When we engage with you in the first year of the application, we know the timing of the courses, which is the timer we put on the account."

CEO of the Higher Education Loans Board (HELB), Charles Ringera, denied rumors that the organization regularly gives the Credit Reference Bureau (CRB) the names of university students who have fallen behind on their loans.

During an interview on Citizen TV, Ringera maintained that loan beneficiaries were expected to repay credits one year after graduation.

Noting a timer set on each student’s account, he continued that no student was required to pay off their loans while still pursuing their studies. The organization’s use of the timer, according to Ringera, allowed them to determine a student’s duration on campus and loan repayment schedules.

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“It is not factual that we request the students to pay the loan before they complete their studies. When we engage with you in the first year of the application, we know the timing of the courses, which is the timer we put on the account.

“When the timer is complete and you are unable to graduate, you can come and tell us. You can even apply for another funding because you could be having a medical case,” he clarified.

On the other hand, he maintained that the names of loan defaulters were put on CRB six years after graduation. Nonetheless, Ringera added that there was still a leeway for the defaulters to negotiate with the board over their loan repayment to avoid negative listing.

The CEO acknowledged that many Kenyans faced challenges such as unemployment, and illness after graduation. Ringera implied that HELB had an open-door policy for beneficiaries and was prepared to work with them to restructure their loan repayment schedules.

“We require you to repay the loan one year after, according to the time stamp. We may need up to six years before we may submit your name to CRB. Hardcore debt is what it is termed.

Ringera intimated that HELB had an open-door policy for beneficiaries and was willing to engage them in restructuring their loan repayment timelines.

“According to the time stamp, we require you to pay the loan one year after. It takes us up to six years to be able to take your name to CRB. That is what is called hardcore debt.

“Remember you have 10 years to pay but if you are in the sixth year and you have never made any attempt to come and tell us what is happening in your life then it becomes difficult for us to find you,” he stated.