MOE Sets New Conditions For HELB Loan Approval Under New Changes.
Students at universities will have to wait a few more days before they can apply for HELB loans as minors.
The Ministry of Education has outlined the conditions that must be met before the Higher Education Loans Board Amendment Bill can be approved.
If this is adopted, students under the age of 18 may soon be able to obtain Helb loans if the restriction is approved.
Gideon Koske, the nominated MP, had submitted a proposal seeking approval of loans for university students under the age of 18.
According to the proposed legislation, anyone who receives an education loan from Helb must have his or her parents or guardians as co-signatories.
During a meeting of the National Assembly Education Committee, Bomachoge-Borabu MP Zadock Ogutu stated that once the borrowing law is amended, the Bill can be passed.
Ogutu stated that the lawmakers fully support the proposed amendment.
“What this means is that before we approve this proposal we need to lay the base for the amendment. It will then provide for expansion of space,” Ogutu said.
According to the ministry report, because minors cannot open bank accounts, parents have no assurance that the money will reach the minors.
“The report does not support the amendment until the co-borrower amendment is legislated."
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This now necessitates the board broadening the definition of a loanee when disbursing loans.
The legislator wanted to broaden the definition to include a parent and guardian in order to allow for co-signing.
Eve Obara, MP for Kabondo Kasipul, supported the proposal, saying it would go a long way toward assisting needy varsity students.
Obara stated that this will allow parents to be aware of loans requested by their children.
Following an attempt by then-Kiharu MP Irungu Kang’ata, the President vetoed a bill containing a similar proposal in 2015, citing sustainability concerns.
The President refused to sign the bill, claiming that it would necessitate massive funds from the National Treasury to keep it running.
He also removed provisions that allowed graduates who did not find work within a year of finishing their studies to be exempt from penalties if they informed the board.
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MPs rejected a bill in August that would have reduced the interest rate on Helb loans to 3% and provided a five-year grace period.
The bill was rejected by the National Assembly Education Committee, which warned that the board would lose Sh693 million per year.
Legislators Press For HELB Changes As Debate on University Applicants’ Age Limit Gains Momentum
MOE Sets New Conditions For HELB Loan Approval Under New Changes
