HELB Announces 80% Penalty Waiver for Borrowers Who Clear Loans in Full
The Higher Education Loans Board (HELB) has announced an 80 per cent waiver on outstanding penalties for borrowers who fully settle their loan balances, offering thousands of defaulters a fresh opportunity to clear their debts.
HELB announced the incentive in a statement issued on August 13, urging borrowers with outstanding loans to take advantage of the waiver and settle their accounts.
“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 stated.
Under the offer, borrowers must pay their entire outstanding loan balance to qualify for the penalty reduction. The 80 per cent waiver applies to accumulated penalties rather than the principal amount owed.
The move comes as HELB continues to face the challenge of loan defaults among former university and college students.
According to figures cited by the board, more than 380,000 beneficiaries have defaulted on their student loans, with the outstanding debt reportedly approaching KSh42 billion. More than 120,000 borrowers have already been listed with Credit Reference Bureaus (CRBs).
For borrowers who fall behind on repayments, penalties can significantly increase the amount owed. HELB has previously applied penalties of KSh5,000 for missed monthly instalments, adding pressure to borrowers already struggling to clear their balances.
Being listed with a CRB can also have serious financial consequences, potentially making it more difficult for affected borrowers to access loans, mortgages and other credit facilities.
HELB has previously warned persistent defaulters that it may publish their names and photographs in newspapers as part of efforts to recover outstanding loans. The board has also indicated that it works with employers and the Kenya Revenue Authority to trace borrowers who fail to comply with repayment obligations, including those working in the informal sector.
How to Repay a HELB Loan
Borrowers seeking to take advantage of the waiver can begin the repayment process through several channels.
One option is the HELB USSD service, *642#. Borrowers can dial the code, log into their accounts, select the loan repayment option and proceed with payment through available mobile-money services.
Repayment can also be made through the HELB Mobile App, where borrowers log in, verify their details and confirm the amount they wish to pay before completing the transaction.
Another option is the Loanee Self-Serve Portal, where borrowers can access their accounts, select loan repayment, enter the amount and choose their preferred payment method.
Borrowers who complete repayment are advised to obtain official clearance from HELB. The board is responsible for confirming that a loan has been fully settled, rather than the borrower’s employer.
The waiver could provide significant relief to former students whose balances have been inflated by accumulated penalties, but borrowers will need to meet the full repayment requirement to benefit from the maximum reduction
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