Families are facing increased financial burden due to higher fees in the new higher education funding model introduced by the government in Kenya last year.
This model has resulted in significant loan obligations for graduates, exacerbated by delays in the disbursement of funds from the government treasury to institutions such as the Higher Education Loan Board (Helb) and the University Fund (UF).
Under the revised system, students, regardless of their financial need, face higher loan payments compared to the previous model. The University Fund has received numerous complaints from students challenging its classification as a grant-in-aid scheme, reflecting widespread dissatisfaction and confusion among applicants.
Government support now includes scholarships administered by the University Fund and student loans through Helb. While scholarships do not require repayment, student and maintenance loans accrue annual interest of four percent upon completion of studies. This is a change from the previous system, where scholarships were automatically awarded to all state-funded students.
Students have been vocal about the challenges they face, including delays in the disbursement of Helb, forcing them to seek alternative sources of funding for essential expenses such as accommodation and food. The situation has led to a significant increase in the number of students opting for private universities as they seek more stable financial arrangements and fewer bureaucratic hurdles in accessing funding.
Education stakeholders stress the importance of adequate funding and timely disbursements for the success of the new model. However, critics argue that the system, which is modelled on Western models, is out of sync with Kenya’s economic realities and carries risks such as high loan default rates.
More recently, the Ministry of Finance’s delay in transferring billions of dollars earmarked for scholarships and student support has put additional strain on the education sector.
Officials have acknowledged that these delays pose a danger to students and families. Education and Well-Being, highlighting the urgent need to streamline financing processes and improve financial management.
As students await their funding decisions for the next academic year, uncertainty remains over the total fees to be paid following the government support assessment.
Universities are responsible for informing incoming students of their financial obligations once funding results are available, to provide clarity on the current challenges facing the higher education sector.
Source (https://teachersupdates.news/funding-delays-higher-university-fees-and-loan-burdens-for-graduates/)