Does HELB Give Loans to Diploma Students?

HELB, or the Higher Education Loans Board, is a Kenyan government agency that provides loans to students pursuing higher education. Many students wonder whether HELB provides loans to diploma students.

The answer is Yes, HELB does give loans to diploma students who are studying in approved Technical and Vocational Education and Training (TVET) institutions.

The amount of money that HELB gives to diploma students depends on their level of education.

For instance, diploma students in TVET institutions can get up to Ksh. 40,000 per year, while undergraduate students can get up to Ksh. 60,000 per year. Masters students can get up to Ksh. 100,000 per year.

It is important to note that the loan is repayable with a 4% interest rate per annum, and the repayment period is usually one year after the completion of studies.

Does HELB Offer Loans to Diploma Students?

Yes, HELB provides loans to diploma students who are enrolled in approved TVET institutions. Students in TVET institutions can apply for the HELB loan after receiving their admission letter from the institution.

The loan application process is relatively simple and straightforward.

Loan Application Process for Diploma Students

To apply for the HELB loan, diploma students need to follow the steps below:

1. Visit the HELB Portal and create an account.
2. Fill in the loan application form and submit it online.
3. Attach all the required documents, including admission letters, national ID, and bank account details.
4. Submit the application and wait for the loan to be processed.

The loan application process for diploma students is similar to that of degree students. However, diploma students must be enrolled in approved TVET institutions to be eligible for the HELB loan.

Loan Repayment Terms for Diploma Students

Diploma students who receive the HELB loan are required to start repaying the loan one year after completing their studies.

The loan repayment period is up to four years, and the interest rate is 4% per annum. The loan repayment terms are flexible, and students can choose to repay the loan in monthly, quarterly, or annual installments.

If a student fails to repay the loan, HELB may take legal action to recover the outstanding amount. Therefore, it is important for diploma students to repay their loans on time to avoid any legal consequences.

In conclusion, HELB offers loans to diploma students who are enrolled in approved TVET institutions.

The loan application process is simple, and the loan repayment terms are flexible. Diploma students who receive the HELB loan must repay the loan one year after completing their studies.

Challenges Faced by Diploma Students in Accessing HELB Loans

Diploma students in Kenya face several challenges in accessing loans from the Higher Education Loans Board (HELB). Some of the main challenges include:

Limited Loan Allocation

HELB has limited funds to disburse to students, and the demand for loans often exceeds the available resources. This means that some diploma students may not receive loans even if they meet the eligibility criteria.

Lack of National Identification Cards

To apply for a HELB loan, students must have a valid national identification card (ID). However, some diploma students may not have IDs, which can hinder their loan application process.

Poor Guarantorship

HELB requires loan applicants to have two guarantors who must meet certain criteria. Some diploma students may struggle to find suitable guarantors, especially if they come from disadvantaged backgrounds.

Unemployment

After completing their diploma studies, some students may struggle to find employment, which can make it difficult for them to repay their HELB loans. This can lead to defaults and penalties, which can further hinder their financial stability.

Inadequate Information

Some diploma students may not be aware of the loan application process or the eligibility criteria for HELB loans. This lack of information can prevent them from applying for loans or meeting the necessary requirements.

In conclusion, accessing HELB loans can be challenging for diploma students in Kenya.

While the government has made efforts to increase loan disbursements, more needs to be done to address the above challenges and ensure that all eligible students can access financial support for their education.

Benefits of HELB Loans for Diploma Students

HELB loans are not only limited to degree students but also to diploma and certificate students in public universities and colleges. Here are some benefits of HELB loans for diploma students:

• Financial Assistance: HELB loans provide financial assistance to diploma students who may not have enough funds to cater to their education needs. The loans cover tuition fees, accommodation, and other education-related expenses.
• Low-Interest Rates: HELB loans attract low-interest rates of 4% per annum, making it easier for diploma students to repay the loans after completing their studies.
• Flexible Repayment Terms: Diploma students have up to 48 months to repay their HELB loans, giving them ample time to find employment and start repaying the loan.
• Improved Credit Score: Repaying HELB loans on time can help diploma students build their credit score, making it easier for them to access other loans in the future.
• Equal Opportunities: HELB loans provide equal opportunities for diploma students to access higher education without worrying about their financial background.

Overall, HELB loans provide a lifeline to diploma students who may not have the financial means to pursue higher education.

With flexible repayment terms, low-interest rates, and financial assistance, diploma students can focus on their studies without worrying about their finances.

Conclusion

In conclusion, HELB provides loans to diploma students who are enrolled in approved TVET institutions. These loans attract an interest rate of 4% and a ledger fee of Kshs. 1,000 per year.

Students who are joining public or private universities within the East African Community directly from high school can also apply for undergraduate loans provided by HELB.

To apply for a HELB loan, students need to visit the HELB Portal and start the application process. They can commence the application after receiving the admission letter from their College or TVET institution.

Students should ensure that they meet all the eligibility criteria before applying for a loan.

It is important to note that only diploma students in approved TVET institutions can apply and get HELB loans.

Diploma students in universities are not eligible for HELB loans, except for a few exempted universities like the Co-operative University of Kenya, Dedan Kimathi University of Technology, and Machakos University.

Overall, HELB loans provide financial assistance to students pursuing Certificates, Diplomas, and Higher National Diploma courses in select Public Universities, select University Colleges, Public National Polytechnics, and approved TVET Colleges under the Ministry of Education.

Read More: Can KMTC students apply for a HELB loan?