The Higher Education Loans Board (HELB) has announced an 80 per cent waiver on outstanding penalties for borrowers who clear their loan balances in full.
The board made the announcement on Thursday, August 13, urging beneficiaries with outstanding loans to take advantage of the offer to settle their debts.
“Settle your HELB loan balance in full and enjoy up to 80% waiver on outstanding penalties. This is your opportunity to clear your balance and take the first step towards financial freedom,’’ HELB wrote on X.
The waiver comes as thousands of former students continue to grapple with outstanding HELB loans, with accumulated penalties increasing their overall debt.
HELB data shows that more than 380,000 beneficiaries have defaulted on their student loans, collectively owing the board nearly Sh42 billion. More than 120,000 borrowers have also been listed with Credit Reference Bureaus (CRBs).
Under HELB regulations, repayment of undergraduate loans begins within one year after completion of studies, or earlier if the board recalls the loan. Borrowers are also allowed to make voluntary payments before or after completing their studies to reduce their outstanding balances.
How to repay
Borrowers can make payments through several official HELB channels.
They can dial *642#, log in or register, select Loan Repayment, choose M-Pesa, enter the amount and complete the transaction using their M-Pesa PIN.
Alternatively, borrowers can use the HELB Mobile App by logging in, selecting the loan payment option, confirming their phone number and payment amount, and completing the transaction through M-Pesa.
Payments can also be made through the HELB self-service portal at www.hef.co.ke by selecting the self-service option, choosing Loan Repayment and following the payment prompts.
Employers making loan remittances on behalf of staff can use the HELB Employer Portal to upload and confirm remittance details before initiating payment through the available options.
Borrowers are advised to retain payment confirmations and verify that their loan statements have been updated.
Clearance after repayment
Once the loan has been fully repaid, borrowers must seek clearance directly from HELB. The board cautioned that employers cannot confirm loan repayment status.
HELB issues a certificate of clearance after confirming that the loan has been settled. Borrowers seeking clearance should fill out the Loan Recovery Enquiry form.
In cases where a borrower overpays, HELB says the excess amount is refundable by the board and not the employer. A Loan Recovery Enquiry form is required to initiate the refund process.
Also Read: Noah Okaya on University students funding
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