HELB test score for loan approval
HELB test score for loan approval
According to Charles Ringera, CEO of the Higher Education Loans Board (HELB), students seeking assistance from the university will now take a test before submitting their application.
Ringera noted on a Twitter page on Monday, August 7, that the test intends to educate pupils on the terms and conditions of the financing.
The assessment will also be used by HELB to categorize students and determine the amount of money granted for scholarships and loans. Before submitting an application, students must earn at least 80% on the exam.
“The test aims to create awareness that this is a loan and scholarship and details the payments you will have to make depending on the classification that you are in,” said Ringera, a banker .
Furthermore, he stated that continuing students, despite being funded under the old model, will be required to take the test.
Why Should You Take the Exam?
Ringera cited cases where students failed to understand loan terms. As well as instances when applicants questioned HELB’s decision to grant a one-year grace period for loan payback.
According to the HELB CEO, the one year grace period was designed to help students transition and establish themselves after graduation. If you do not repay the debts, your siblings will be unable to access them. Loan repayments account for 33% of our budget, according to Ringera, a former Central Bank of Kenya inspector.
“If we relax the model more Kenyans will lack the funding like last year because we ran out of budget,” he added.
He encouraged Kenyans to fulfil their obligations.He also recommended that applicants repay their loans in instalments, starting from Ksh500 gradually.
Ringera further urged Kenyans to embrace the informal sector which also offers employment opportunities for individuals post-graduation.
He warns Kenyans to fulfill their duties and return loans in installments. As well as avoiding further funding cuts, as last year’s model failed. Ringera also urged Kenyans to embrace the informal sector, which also provides post-graduation work options.
