HELB eyes new funding avenues as student loan demand rises

The Higher Education Loans Board (HELB) is looking to alternative sources of funding to meet the growing demand by students to access education.

According to HELB, the fund manager can no longer rely solely on government funding to meet demand.

Allocated Sh6.5 billion in the 2015/16 budget, HELB projects demand for funding to joining university to shoot to Sh15 billion in the next two years.

For starters, the Higher Education Loans Board plans to engage counties and constituencies to turn bursaries and scholarships’ into a revolving fund and manage it on behalf of the counties.

“HELB as an independent fund manager will provide a platform for transparent selection of financially vulnerable students. The decision as to who benefits from the revolving fund is predetermined by the county or constituency through a selection process that is then automated,” HELB Chief Executive Officer Charles Ringera said.

HELB is also engaging development partners to develop prioritized education loans such as in the health or oil and gas sector as a means to bridge the financing gap.

“Sh530 million has been mobilized and has supported over 9,000 healthcare workers in various training institutions in the country,” he said.

The government established HELB to shoulder the burden of parents and students at public universities, but has since increased its scope to cover private institutions.

With the ever increasing numbers, HELB has faced a challenge mobilizing resources to meet the demands of students seeking financial aid.

HELB will also be reaching out corporate and individual partners to fund the institution in advancing credit to students.