Why students should consider the new funding formula while selecting universities

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Victor Ochieng' cautions students that under the new funding formula, government scholarships are only for public university students.

Initially, there was the Differentiated Unit Cost (DUC) Model, where the government provided financial support to students based on the cost of specific courses. Then came the new one, Variable Scholarship and Loan Funding (VSLF) Model. Going by the new funding formula, university students should get State funding for their university education based on bands.

Report of the Presidential Working Party on Education Reform, chaired by Prof Raphael Munavu, proposed the categories as: Vulnerable, extremely needy, needy and less needy. Then, in the recent past, there was a slight review of the model. The introduction of 5 categories: Band 1-5. Band 1(previously vulnerable), band 2 (previously extremely needy), band 3 (previously needy) and band 4 (previously less needy). Then, band 5 (new category).

Chiefs and local pastors are to play an integral role in identifying various categories of students through a system known as the Means Testing Instrument (MTI), developed by the Higher Education Loans Board (HELB), now known as the Higher Education Fund (HEF). Based on the category, students should get different levels of funding in the form of scholarships, loans and household contributions. In order to determine a student’s level of need, HEF should use certain parameters to ascertain that, which include: Parent background, gender and course, school type, expenditure on education, family size and composition, marginalisation and a person living with disability.

First Funding Formula                                     

Vulnerable students were to get full funding through 82% scholarship from the government, and 18% of HELB loan. The extremely needy were to get 70% scholarship, and 30% HELB loan. Households of students in categories of vulnerable and extremely needy students were not expected to raise any amount. The needy were to get 53% scholarship, 40% HELB loan. The less needy were to get 38% scholarship, 55% loan. In that funding formula, households of students falling in the categories of needy and less needy were to raise 7% of the fee.

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All students who score C+ (plus) and above, are to apply. It is how they become eligible for scholarship consideration. Albeit, as students embark on this important exercise, they should take note: that in the new funding formula, students who matriculate into private universities, are not be eligible for government scholarships. Moreover, for those who are eligible, the government considers merit, level of need, national priorities and affirmative action when selecting beneficiaries.

Reviewed Funding Formula

In the reviewed funding formula, all categories (Band 1-5) are eligible for scholarships and HELB loans. Then, all households have a certain percentage of fees to raise. Consequently, there is the Upkeep Boom for each category. Band 1 (previously vulnerable) gets 70% scholarship, 25% HELB loan, the household pays 5%, and the upkeep boom is Sh 60,000. Band 2 (previously extremely needy) gets 60% scholarship, 30% HELB loan, household pays 10%, and upkeep boom is Sh 55,000. Band 3 (previously needy) gets 50% scholarship, 30% HELB loan, the household pays 20%, and upkeep boom is Sh 50,000. Band 4 (previously less needy) gets 40% scholarship, 30% HELB loan, the household pays 30%, and upkeep boom is Sh 45,000. Band 5 (new category) gets 30% scholarship, 30% HELB loan, the household pays 40%, and upkeep boom is Sh 40,000.

By Victor Ochieng’

Victor Ochieng’ is a Career Educator. He guides students on how to make informed career choices. vochieng.90@gmail.com. 0704420232

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