How Higher University Fees Will Increase Student loans.
The revised costs that prospective university students would be required to pay for each university course under the updated model have been made public by the government. To meet the remaining expenses without making any payments, some students could be required to take out student loans.Due to the high unemployment rate, these changes may cause Kenyans to have higher amounts of debt.
According to the government, this new funding strategy intends to boost university enrolment while reducing the financial strain on schools that have a lot of debt and expenses.
According to their financial demands, students are categorized in this model from weak to needy. Access to government-funded loans and scholarships is made possible by this arrangement.
While students in extreme need make roughly Ksh23,671 a month, students in the lower category lack household income. While less impoverished students make between Ksh. 70,001 and Ksh200,000 per month, poorer students make between Ksh. 23,672 to Ksh70,000 per month.
The Higher Education Loan Board (HELB) test tool is designed to measure the level of need, taking into consideration characteristics like parents, gender, type of education, prior education, etc.
For the fiscal year 2023–2024, the government has set aside $39.4 billion to the New Funding Model. The entire Ksh18.6 billion will be given in Phase 1 of the financial year, and an additional Ksh12.5 billion has been set aside this year to support this approach.
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By September 7, students must submit their free applications for loans and scholarships at the official website, hef.co.ke. The review took around seven days, and after that the money was given out.
As of August 23, 2023, university and TVET students had submitted 75,272 successful applications. The Ministry of Education anticipates an early application rate of 145,060 TVET students and 140,107 university students.
Depending on need, university students will receive varied amounts of financial assistance. High-need students will receive 70% scholarships and 30% loans, compared to 82% awards and 18% loans for low-need students. Upon matriculation, students will get a 53% scholarship, a 40% loan, and a 7% family payment. Students with little financial need will get 38% in scholarships, 55% in loans, and 7% from family contributions.
The support for TVET students will also be given on a sliding scale. Students who are weak will receive 80% in scholarships and 20% in loans, students who have a great need will receive 70% in scholarships and 30% in loans, students who are in need will receive 50% in scholarships and 30% in loans, and their families will contribute 20%, while less needy students will receive 32% in scholarships and 48% in loans, and they will receive and contribute 20%.
In addition, students will receive a maintenance stipend ranging from Ksh13,600 to Ksh. 60,000 based on their level of need and whether they are enrolled in colleges or TV institutes.
In the end, as seen by the various costs for the five different university programs, the amount students receive is dependent upon the course they select. Degrees in medicine, law, education, the arts, and business are among them.
How Higher University Fees Will Increase Student loans.