- The board is seeking to broaden its finance base by reaching out to guarantors of defaulters
- It has sent text messages to guarantors advising them to talk with loanees concerning payment
- Paying the loan, according to HELB, guarantees one another loan even before the former is fully paid
- The fund made it clear it might have to recover loans from guarantors if beneficiaries failed to repay
The Higher Education Loans Board (HELB) has started contacting guarantors of beneficiaries who have defaulted in servicing their education loans. It has also warned the loans might be recovered from them.
The communications, sent inform of texts messages, directed guarantors to engage students whom they facilitated in getting the loans an ways of payment.
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The communications, sent inform of texts messages, directed guarantors to engage students whom they facilitated in getting the loans an ways of payment. Photo: UGC
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TUKO.co.ke understands that reaching guarantors is a mechanism the financier adopted in 2017and targets those who have not communicated for over 10 years.
"We are contacting guarantors of those who are not easily traceable, probably living in a foreign country, or those who have failed to pay for more than 10 years.The beneficiaries are expected to contact Helb and start paying the loan a year after completing college. In cases where we do not hear from them even after contacting them we are forced to contact the guarantors,” Charles Ringera, the board's CEO earlier said.
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According to the financier pilling pressure on defaulters will go along way in broadening its financila base needed to loan other needy students.
In another communication sent on social media, HELB warned that it could start recovering the money from guarantors if a beneficiary showed no signs of commitment.
"Kindly note that you are required to make a minimum payment of KSh 5,000 within the next seven days to prevent recovery from the guarantors and provide written commitments (email or letter) on how you will continue making monthly payments," HEBB replied a tweep user who sought clarification on the issue.
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In a statement sent on Friday, November 9, the board reminded employers to making timely remittence for their employees warning that late payments could result in penalties.
According to HELB, the minimum amount one can make as monthly payment is KSh 1500.
In a separate communication, it indicated that those servicing their loans religiously had an advantage of benefitting from additional loans.
This, HELB however said, was only achievable if the prospective borrower earns at least KSh 23,000 as monthly basic salary.
Here are some the reactions from those who commented after learning their guarantors were contacted by HELB:
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