All loanees are required to start repayment after a period of one year on completion of studies, or within such a period as the Board may decide to recall the loan whichever is the earlier (Section 15 HELB Act). Paying the higher education loans at an early age reduces an individual’s financial burden in midlife when one is bringing up a family, paying a mortgage as well as planning for retirement. Among other advantages of paying the loans include; reduction of the number of loans that an individual has hence avoid being blacklisted with the Credit Reference Bureau (CRB) hence one can easily get a bank loan.
To ease your repayment, the Board has developed several different modes of repayment that suits the loanees who are employed and self-employed such as check off system, mobile payment that include M-Pesa, Airtel among others.
Therefore your obligation as a Loanee under the Act is to;
- Inform the Board of your contact addresses (section 15 (a) HELB Act),
- Begin repayment of your loan together with the interest accrued thereon (Section 15(b) HELB Act),
- Facilitate the deduction and remittance of the loan to the Board – (Section 15 (c) HELB Act).
The Higher Education Loans Board Act, 1995 demands that employers adhere to the law as stipulated below:
- Disclose Loanees: Inform the Board that they have employed loanee(s). This should be done within three months from the date of employment. (Section 16(1) (a) of the HELB Act)
- Deduct from the wages or remuneration of the loanee(s) the amount of any loan as instructed by the Board (Section 16(i)(b) of the HELB Act)
- Discharge/remit the amount deducted from the loanee’s wages or remuneration