New Funding Model: Relief for Students from Poor Backgrounds, Larger Loans for the Rich
The new university funding model aims to provide financial support to students based on their level of need.
Under this system, the neediest students will have their fees paid in full, while others will receive varying levels of financial aid.
The implementation of this model seeks to address the burden placed on the most vulnerable students by the previous system, where all qualified students received support regardless of their financial situation.
Categorization of Student Needs.
During a media sensitization meeting in Naivasha, Universities Fund Chief Executive Geoffrey Monari outlined the four categories used to determine students’ level of need: vulnerable, extremely needy, needy, and less needy.
Students categorized as vulnerable or extremely needy will be exempted from paying any direct fees.
Instead, the government will cover their dues through scholarships and student loans repayable after securing employment.
Needy and less needy students will be required to pay a minimal cost for direct fees.
Financial Aid Breakdown.
To illustrate the funding model, let’s consider a Bachelor of Law program at JKUAT that costs Sh238,208.
A student from a vulnerable home will receive a government scholarship of Sh195,330, covering 82% of the fees. Additionally, they will be granted a student loan of Sh42,877, amounting to 18% of the total cost, thus fully covering their tuition fees.
Extremely needy students will receive a 70% scholarship, equivalent to Sh166,745, and an additional Sh71,463 to complete their fees.
Needy students will receive government scholarships of up to 53% and loans of up to 40%, while their households will contribute only 7% of the fees.
Less needy students, on the other hand, will receive a maximum government scholarship of 38% and loans of 55%, with their households covering the remaining 7% of the cost.
Financial Allocation and Loan Sustainability.
The new university funding model will be supported by a budget of Sh20.3 billion from the government.
The previous model disproportionately burdened the neediest students as they received higher loan amounts.
In contrast, the new model aims to allocate more loans to students from richer backgrounds, who are better equipped to repay them.
This shift seeks to ease the financial burden on needier families, as loans become a lifetime burden for them.
The government also plans to implement data reforms to monitor students’ progress throughout their university education.
This reform will enable the identification of students who discontinue their studies, allowing for better support and interventions.
“At the moment it is very hard to tell when a student discontinues their studies, we will put a system in place too.“
Dr. Mercy Wahome, the Chief Executive of the Kenya Universities and Colleges Central Placement Service (KUCCPS), emphasized that the funding allocation should be based on the actual cost of programs.
By focusing on individual students, the government aims to encourage universities to prioritize quality education to attract more students.
“Government financial allocation will focus on individual students… when we focus on the student then the universities will focus on the quality to help attract more students,” she said yesterday.
New Funding Model: Relief for Students from Poor Backgrounds, Larger Loans for the Rich
