President William Ruto’s government has taken a firm stance on the recovery of HELB (Higher Education Loans Board) loans. They are urging defaulters to start repaying their debts. Otherwise, they will face consequences.
The HELB has engaged debt collectors to track down individuals who have neglected to repay their education loans. This action indicates a serious approach to addressing the issue of loan defaults.
This move comes as the agency struggles with financial constraints. These constraints have been exacerbated by the economic challenges faced by many beneficiaries.
In a recent announcement, HELB published an open tender for qualified debt collection services. They are seeking to recover funds from those who have defaulted on their loans. The agency is looking for reputable service providers to help in this effort for two years.
Interested firms have until October 1 to send their applications. This highlights the urgency of the situation as HELB aims to bolster its financial resources.
The HELB fund is designed to run on a revolving basis. Beneficiaries are expected to repay their loans to support future students. But, the increasing number of defaults has hindered this system.
This impacts HELB’s ability to offer financial assistance to needy students pursuing higher education. The current economic climate has made it difficult for many former students to meet their repayment obligations. This difficulty is leading to a growing crisis within the institution.
The government’s aggressive approach to loan recovery reflects a broader concern about the sustainability of the HELB fund. It also reflects its capacity to support new generations of students.
As the deadline for tender applications approaches, the pressure mounts on defaulters to take action. They must either repay their loans or face the consequences of their inaction.
