Funding Delays, Higher University Fees and Loan Burdens for Graduates
Families are now paying higher fees under the new higher education funding model introduced by the government last year, resulting in students graduating with substantial loans, as analyzed by Nation.
The model, now in its second year, faces funding challenges, with delays in disbursing money to the Higher Education Loans Board (Helb) and the Universities Fund (UF) by the National Treasury.
Students applying for government funding will incur heavier loan burdens compared to the old model, regardless of their financial need. Since January 2024, the UF received 9,726 appeals from students disputing their classification, with 4,087 successful and 5,639 rejected.
Government support comprises scholarships awarded by the UF and student loans through Helb.
Scholarships are non-repayable, but tuition and upkeep loans will accrue a four percent annual interest upon graduation.
Previously, graduates only repaid the upkeep loan, with scholarships granted automatically to all government-sponsored students.
Example
For instance, a student classified under Band 1 (most needy) pursuing a medicine degree costing Sh520,000 per year receives a Sh364,000 scholarship, a Sh130,000 tuition loan, and a Sh60,000 upkeep loan annually.
The household must cover the remaining Sh26,000. Over six years, the student’s total loan will be Sh1,140,000, compared to Sh360,000 under the old model for maximum upkeep loan recipients.
A Bachelor of Arts degree, the cheapest across universities at Sh144,000, allows a Band 1 student to receive a Sh100,800 scholarship and a Sh36,000 tuition loan per year.
With a maximum upkeep loan of Sh60,000, the total debt over four years will be Sh384,000, compared to Sh240,000 under the old model.
Student Experiences and Shifts to Private Universities
Students have reported suffering due to delays in Helb disbursements, borrowing from peers to cover accommodation and meals, as highlighted by Kenyatta University student Eric Maina.
The new model also appears to be pushing more students to private universities, with over 18,000 opting for private placements compared to 9,000 the previous year, as reported by the Kenya Universities and Colleges Central Placement Service (Kuccps). In total, Kuccps placed 153,274 students this year.
Students joining universities and colleges in August are currently applying for funding, with results expected by July 31, 2024.
The actual fees payable, considering government support, will be determined post-application.
Education Cabinet Secretary Ezekiel Machogu emphasized that parents and guardians would only know their contribution after the funding assessment based on the student’s need.
Universities have been instructed to notify first-year students of their expected contributions after UF and Helb funding results are released.
Prof. Egara Kabaji from Masinde Muliro University stated that the success of the model depends on adequate resource allocation and timely disbursements.
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He criticized the model as a “cut-and-paste job” from the West, unsuitable for Kenya’s context where students struggle to find work during and post-studies, potentially leading to high loan default rates and the model’s collapse.
Treasury Funding Delays
Last month, Principal Secretary for Higher Education Beatrice Inyangala informed the National Assembly Education Committee that the National Treasury had not remitted Sh29 billion to UF and Helb, including Sh7.9 billion for first-year scholarships under the new model and Sh4.2 billion for Tvet students’ scholarships. Additionally, Sh6.7 billion meant for university and Tvet students under both models was delayed.
Dr. Inyangala noted that these delays significantly impact students relying on these funds, jeopardizing their education and overall well-being.
Funding Delays, Higher University Fees and Loan Burdens for Graduates
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