The Higher Education Loans Board (HELB) employs a batch approach to determine loan amounts for first-time applicants through the new Higher Education Funding (HEF) model. This process leverages a tool known as the Means Testing Instrument (MTI) to assess each student’s financial need, ensuring that support is prioritized for the most vulnerable.
The journey begins with applicants providing detailed financial information about their families. This data, encompassing factors such as the household’s monthly income, the number of dependents, and geographical location, is fed into the MTI. The instrument meticulously analyzes these details to gauge the family’s capacity to contribute towards the student’s education.
Following the MTI assessment, applicants are categorized into one of five distinct bands, which directly dictate the level of financial support they will receive. The bands are structured to provide progressively less government support as the household income increases:
1. Band 1 (Most Vulnerable): For households earning up to Ksh. 5,995 monthly.
o Scholarship: 70% of tuition fees.
o HELB Loan: 25% of tuition fees.
o Family Contribution: Minimum 5%.
o Upkeep Loan: Ksh60,000 annually.
2. Band 2: For households earning up to Ksh. 23,670 monthly.
o Scholarship: 60% of tuition fees.
o HELB Loan: 30% of tuition fees.
o Family Contribution: 10%.
o Upkeep Loan: Ksh55,000 annually.
3. Band 3: For households earning up to Ksh. 70,000 monthly.
o Scholarship: 50% of tuition fees.
o HELB Loan: 30% of tuition fees.
o Family Contribution: 20%.
o Upkeep Loan: Ksh50,000 annually.
4. Band 4: For households earning up to Ksh. 120,000 monthly.
o Scholarship: 40% of tuition fees.
o HELB Loan: 30% of tuition fees.
o Family Contribution: 30%.
o Upkeep Loan: Ksh45,000 annually.
5. Band 5 (Highest Income): For households earning over Ksh. 120,000 monthly.
o Scholarship: 30% of tuition fees.
o HELB Loan: 30% of tuition fees.
o Family Contribution: 40%.
o Upkeep Loan: Ksh40,000 annually.
Under this new model, tuition fees are directly disbursed by HELB to the respective university or TVET institution, rather than to the student. The upkeep loan, intended for living expenses such as accommodation, food, and transport, is transferred directly to the student’s personal bank account.
A crucial aspect of the HELB loan is the repayment requirement for the loan portion of the funding, which commences after students complete their studies. This ensures that students with the most pressing financial needs receive a greater proportion of non-repayable aid.