The Higher Education Loans Board (HELB) revealed that lawyers, doctors, accountants, and engineers form a bulk of more than 300,000 loan defaulters.

HELB is seeking more legal power to freeze all the accounts of defaulters who have refused to pay their loans.

HELB Chief Executive Officer (CEO) Geoffrey Monari revealed that 21,356 lawyers, 19,580 accountants, 16,855 doctors, and 12,014 engineers have failed to repay their loans.

He also noted that some defaulters are unwilling to repay their loans despite having stable jobs and profitable businesses.

“We are moving to strengthen our legal framework so that we can freeze the bank accounts of defaulters who are able but unwilling to pay,” said Monari.

He added that when defaulters repay, it gives another student a chance to study.

“This is about fairness and sustainability, HELB is a revolving fund; when you repay, another student gets a chance to study,” Monari added.

Profession That Repays HELB Loan

Teachers top the list as the profession that repays their loans through the Teachers Service Commission (TSC), collecting about Ksh 200 million monthly.

Monari acknowledged teachers’ discipline of meeting the repayment obligations.

“We celebrate teachers for their discipline. They pay consistently, even in advance, to clear their HELB loans and qualify for promotions or credit facilities,” he stated.

Also Read: How to Successfully Appeal Your HELB Loan or Scholarship and Get a Higher Amount

Additionally, the  CEO said HELB has listed 124,640 defaulters with the Credit Reference Bureau (CRB) and 83,500 with debt collectors.

“Our process is simple; we issue three reminders, then list you with CRB. If you still don’t pay, we hand over the case to debt collectors, and now, with legal backing, we’ll be able to freeze accounts to recover funds,” Monari emphasized.

How HELB Differentiates Employed and Unemployed Graduates

As HELB manages 300,000 matured loan accounts, Monari explained how the agency differentiates between unemployed graduates and employed ones.

“We understand that it can take time to find a job. Studies show most graduates take up to five years to secure stable employment. But once you can pay, we expect you to do your part,” he explained.

Also Read: How to Increase Your M-Shwari Loan Limit

HELB also proposed to come up with a unified return data portal that will track students from the point they start their studies until completion.

In addition, students in private universities will continue to receive at most 60% of the cost of education.

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HELB offices in action for illustration purposes. PHOTO/Pixels