What is HELB and Should You Borrow It?

Trying to get through a Kenyan university is quite difficult for someone who has no financial aid. So most people consider HELB loans, but is it worth it?

HELB is the Higher Education Loans Board that gives loans to students joining Universities, Colleges, and TVET institutions

The Higher Education Loans Board usually has friendly interest rates, which make it a good option for many people, but with the rising cost of living, one may be wondering whether it’s worth taking a loan for University education.

The interest rate is friendly, currently standing at 4 percent.

It is a loan, not a grant, which means you do not have to pay it back until you have completed your studies and gotten a job.

The loan can be used for any expenses related to your education, including tuition, fees, books, and living expenses.

You can apply for a HELB loan online, and they will provide you with an immediate decision.

Having a HELB loan can be very helpful, but note that you have to pay it back, and if you have not paid the loan by the time you finish school, the interests will have accumulated such that you may end up paying back double the amount you were loaned.

The loan must be repaid within 10 years of graduating or leaving school.

If you do not repay your loan on time, you will be charged a penalty fee.

You may have to pay additional fees if you defer or consolidate your loan.

HELB penalties are huge, once you miss a repayment period, you will immediately be listed on the Credit Reference Bureau (CRB).

If you're an undergraduate student, you may only qualify for a maximum of Kshs. 45,000 per year.

HELB loans can be a great way to finance your education, but it is important to understand the pros and cons before you borrow. If you are not sure whether a HELB loan is right for you, talk to a financial advisor.

Ultimately, the decision of whether or not to take out a HELB loan is a personal one. There is no right or wrong answer, and the best decision for you will depend on your individual circumstances.