The Higher Education Loans Board (HELB) has raised alarm over rising default rates, warning that the trend threatens new students’ access to academic loans and the institution’s long-term sustainability.
HELB Chief Executive Officer Geoffrey Monari on Thursday announced that the agency will roll out a tough new strategy to pursue loan defaulters both locally and abroad. He revealed that plans are underway to partner with the police to track individuals who have benefited from student loans but failed to repay, noting that the crackdown will leave no room for escape.
“We must ensure that every beneficiary meets their repayment obligation. Continued default not only weakens HELB’s financial position but also denies thousands of new students the opportunity to access loans,” Monari stated.
The development has sparked heated debate in Parliament, with lawmakers expressing concern that HELB’s survival is at risk if urgent reforms are not introduced. MPs are now set to summon Education Cabinet Secretary Julius Ogamba Migos to provide a comprehensive plan to address the board’s growing financial crisis.
Currently, HELB supports hundreds of thousands of students in universities and colleges across the country. However, high default rates have strained its ability to sustain the revolving fund, leaving many new applicants in limbo.
As the institution sharpens its enforcement measures, stakeholders are urging the government to balance recovery efforts with policies that create a more supportive repayment environment for graduates grappling with unemployment and economic hardship.
