The Higher Education Loans Board (HELB) has dismissed viral social media claims that it plans to freeze bank accounts of more than 300,000 loan defaulters, calling the reports false and misleading.
A widely circulated post had alleged that HELB was seeking parliamentary approval to freeze the bank accounts of 316,000 graduates who defaulted on student loans, potentially recovering up to Sh35 billion.
In a statement issued on June 8, HELB assured borrowers that no such drastic action is underway.
“Relax, your bank account is safe!” HELB said in a post. “That viral post saying HELB is freezing accounts? Pure fiction & misinformation! Let’s not stress over fake news. Check HELB’s official page for the real tea.”
While the agency has acknowledged efforts to improve loan recovery, including outreach and compliance campaigns, officials say freezing personal bank accounts is not among the current strategies.
HELB to Loan Defaulters
Additionally, HELB is urged the public to verify information through its official website and social media pages, warning that misinformation can cause unnecessary panic among graduates.
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As of 2024, HELB was still owed billions in unpaid loans, which the agency says are crucial for funding new university students.
However, the board insists any recovery efforts will be pursued through lawful and transparent means.
During the 2023/24 financial year, the Higher Education Loans Board (HELB) supported 606,329 students with funding totalling KSh 33.45 billion.
HELB reported that 710,107 loan accounts, carrying a combined value of KSh 41.73 billion, are still within the grace period and not yet due for repayment.
Meanwhile, 986,674 accounts worth KSh 127.81 billion have matured and are now targeted for recovery.
Steps Taken to Recover Student Loans
To encourage repayment, HELB is actively engaging borrowers through various communication channels including SMS, email, social media, and direct phone outreach.
Also Read: HELB to Partner with Police in New Strategy to Track Loan Defaulters
These efforts aim to raise awareness about repayment responsibilities and available support options.
To make repayment more manageable, HELB offers several incentives and flexible plans which includes penalty waivers for borrowers who pay early or in lump sums.
Additionally, they offer Custom repayment plans tailored to borrowers’ financial situations, including income-based options, extended terms, or temporary deferments.
HELB has also strengthened its recovery measures by closely monitoring defaults and applying enforcement actions such as legal proceedings, credit bureau listings, and collaboration with debt collection agencies.
HELB works with employers, financial institutions, and other partners to promote awareness and enable automatic loan deductions from salaries or bank accounts.
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