Money Tips: 5 Ways To Deal With Your HELB Loans With or Without a Job

By Elizabeth Benu
With the demand for higher education more students are applying for student loans to support their education. The fact is that you are responsible for repaying the loan even if you do not graduate or don’t get a job for that matter.

But with the consequences that come with defaulting the payment with  a grace period of one year of completion of studies what can you do?

Andrew Makhulo, a Financial Advisor at MGK Consultants, advises graduates on how to handle their HELB Loan with or without a job

He says for the graduates already in employment, they should consider their salary  and also other financial responsibilities before they start making the payment.

“For example if you are earning a huge salary of about a Ksh100,000, you can take off a larger amount more than the prescribed monthly repayment; say Kshs. 5,000,” he elaborates

If you are not employed, Mr. Makhulo advises that you look for means of earning a living.

“You can look for contract jobs or start a small business that will get you enough income to help repay the loan,” he says

‘What is the right repayment option you would advice someone to take?’ I probe

“The best thing is to have a rate that will not be a burden and that will enable you to cater for other responsibilities,” he counsels.

He however adds that those with responsibilities such as taking care of parents or educating their siblings should stick to the stipulated payment (Kshs. 1,500 monthly) and take a longer time without having to strain.

‘How do student loans affect your career considering most government jobs ask for the HELB Clearance Certificate?’ I probe further

“Evading payment has a lot of impact on your career and the board will find its way to get the money back. For example as an accountant the board may request the examination body to take away my practicing certificate. This will see me out of a job and with no profession. So to get another job will require me to repay that loan,” he explains.

If you are planning to default the board confirms that you will be penalized for each month that remains unpaid and pay a fine of not less than 5,000 shillings.

And if you think you can get away since the board does not know where you are, the website reads, “You are supposed to inform the Board of your whereabouts or face a penalty.”

If you want to repay your loan, the website lists the mode of payments as Cheques/Cash Deposit, EFT, Standing Order, (by employer or self), Mobile Phone Money Transfer (M-Pesa & Airtel Money), Credit or ATM (Debit) Card and Pesapoint & Equity Bank ATMs.

Mr. Makhulo concludes by saying, “Once you get your first job, start paying. This will enable you have a stable life, get a good credit history and an ability to invest in your other plans. The earlier you pay, the better”

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