Students Drowning in Debts After Aqcuring HELB Loans

BY Lisa Chebet Kibet.

Source: HELB portal

Imagine this: After graduating from your college years of sleepless nights, last-minute assignments and surviving on instant noodles, you're excited about your career- until reality hits. You check your HELB loan balance, and boom! You owe more money than you've ever seen in your life. And to make things worse, you don't even have a job yet.

Welcome to the harsh reality of student loans in Kenya.

Over the past few years, the issue of university students sinking deeper into debt has become a concern. For many, the dream of higher education is turning into a financial nightmare. But what exactly is causing this crisis?

A huge contributing factor is the increase in tuition fees. In recent years, both public and private universities have been increasing their tuition. This has made it difficult for students from middle—and lower-class families to afford education. Due to high expenses, students have no choice but to rely on loans to get through school.

Getting into university is one thing, surviving is anoth er.Accommodation n(rent), transportation, food, internet, and even printing assignments all add up.And if you're studying in Nairobi or any other big city,good luck! The c ost of living is brutal. Many students find themselves constantly borrowing money just to make it through the semester.

The Higher Education Loans Board (HELB) was introduced to ease the financial strains of students by providing loans for tuition and other expenses. And yes, it has helped thousands access education. But here’s the catch: these loans come with interest. While 4% per year might seem manageable, it adds up quickly, especially for graduates who struggle to find employment. The repayment terms aren’t exactly friendly either, forcing many to default and rack up penalties. Before you know it, your debt has doubled, and HELB is hunting you down like a debt-collecting ghost.

On the bright side, some new funding models like income-driven repayment could help ease the pressure by adjusting loan payments based on income levels.Crowdfunding has gained popularity, with students turning to social media platforms to raise money for school fees. But let's be real, not everyone can rely on well wishers to fund their education.

The Kenyan student debt crisis is real, and it's not only just about tuition but also about the entire cost of being a university student. Until universities lower fees or introduce better funding options, students will continue drowning in debt before they even get a chance to build their future.

So the next time you hear someone say, “Education is the key to success,” remind them that it might also be the key to lifelong debt.