Africa: University students set to receive bigger loans

Posted by Mgbenka at Tuesday, April 10, 2012 |

More than eighty,000 university students can receive larger loans and bursaries by September if their loans agency is awarded the Sh1.5 billion it's seeking from the Treasury.

The Higher Education Loans Board (Helb) said that despite the rise within the price of living, the number allotted to students has remained constant. It has, however, not nevertheless revealed details of the new allocation per student. Currently, the minimum quantity is Sh35,000 and therefore the most is Sh60,000 counting on the socio-economic standing of the coed. the scholars are awarded bursaries ranging between Sh3,000 and Sh8,000.

But this unit price per student of Sh120,000 per programme was calculated in 1995, where the govt. pays Sh70,000 per student, leaving Helb to supplement the remainder. the shortage of a review of the revenues has seen universities rely heavily on parallel degree programmes where self-sponsored students pay higher fees, supplementing the income of the establishments.

“Helb’s capitation on student loans and bursary has remained at Sh1.4 billion and Sh82.3 million, respectively, despite a rise within the price of living and therefore the variety of scholars admitted into the colleges,” says a report by the board. This has prompted public universities to extend enrolment of parallel degree programmes from one hundred,649 students in 2008 to 143,114 last year.

The report has counseled that Helb be allotted an extra Sh1.5 billion because it seeks to reverse the trend where quite five0 per cent of the coed population in universities is on parallel degree programmes.

“This can make sure that loans, bursaries and scholarships awarded to students mirror this economic standing within the country and Helb are going to be in an exceedingly position to fulfill the increasing demand for loans, bursaries and scholarships.”

This demand has been fuelled by Helb’s enlargement of its capability to supply loans and bursaries to Kenyan students in non-public universities, mid-level faculties among the East African Community. however the general public universities, that are its main province, have seen a rise within the variety of scholars admitted for each the regular and self-sponsored programmes who obtain loans and bursaries additionally.