- HELB has announced an 80 per cent waiver on outstanding penalties for borrowers who clear their full loan balance, applicable only to penalties and not the principal amount.
- HELB data has shown that more than 380,000 beneficiaries have defaulted on their loans, with outstanding debt estimated at nearly Sh42 billion, and over 120,000 borrowers listed with CRBs.
- The board has stepped up efforts to trace defaulters through employers and the KRA.
The Higher Education Loans Board (HELB) has offered borrowers an opportunity to reduce accumulated penalties by 80 per cent if they clear their outstanding loan balances in full. The board announced the waiver on August 13, saying the initiative is aimed at encouraging borrowers with outstanding loans to settle their debts.
“Settle your HELB loan balance in full and enjoy up to 80% waiver on outstanding penalties,” HELB said, describing the offer as an opportunity for borrowers to clear their balances.
The waiver applies to penalties and not the principal loan amount. Borrowers must therefore settle the entire outstanding balance to qualify for the reduction.
HELB data shows that more than 380,000 beneficiaries have defaulted on their student loans, with the outstanding debt estimated at nearly Sh42 billion.
More than 120,000 borrowers have also been listed with Credit Reference Bureaus (CRBs) over loan default, potentially affecting their ability to access credit and other financial services.
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The cost of default can increase significantly because HELB charges Sh5,000 for every missed monthly instalment, adding to the amount owed by borrowers.
The board has stepped up efforts to trace defaulters, including working with employers and the Kenya Revenue Authority to identify borrowers who have failed to honour their repayment obligations.
HELB has also warned persistent defaulters that their details could be published in newspapers as part of efforts to recover outstanding loans.
Borrowers seeking to take advantage of the waiver can initiate repayment through the *642# USSD service. After logging in, they can select the loan repayment option and complete the transaction using mobile money.
Another option is the HELB Mobile App, where borrowers can verify their details and outstanding amount before making payment.
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Borrowers can also access the Loanee Self-Serve Portal through the Higher Education Financing website and select the loan repayment option to make a payment using their preferred method.
Those who complete repayment are advised to obtain an official clearance confirmation from HELB, as the board is responsible for confirming that a loan has been fully settled.
By Jonathan Mwinzi
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