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HomeWealthParents Will Pay Only 7% Fees In New University Funding Model

Parents Will Pay Only 7% Fees In New University Funding Model

Earlier this year, the government introduced a new funding model for the 170 000 plus students who sat for the 2022 KCSE and are expected to join various university and TVET institutions in the country.

While the new model has caused widespread controversy and confusion, it is important to note that students joining TVETs and Universities will now be required to apply to the government for help in funding their fees.

Formerly, every student who joined university received a grant from the government irrespective of their financial background.

Under the new funding model, fees will be paid via a government nonrefundable scholarship, a paid loan (HELB), and through payments by parents.

University Fund CEO Geoffrey Monari said that vulnerable students will now get a small loan from the government, plus a huge nonrefundable scholarship. Their parents will not be required to pay a single coin.

On the other hand, students from wealthy families will receive a higher chunk of HELB loan than they were receiving before, then they will repay the loan after graduation.

The remainder of their fees will be paid via scholarships and payments by their parents.

Students are expected to apply for funding via the website www.hef.co.ke. Applicants will be asked to provide a valid email address, national ID, birth certificate, admission letter and the applicant’s phone number.

Once they have applied, the University fee statement will show how much they are eligible to receive via loans and scholarships and how much the parent is expected to pay.

The students will also be required to download a letter from the funding website which they will carry during admission.

Under the new funding model, which applies only to 2022 candidates, students will be classified in these four categories:

  • Vulnerable – These will receive 82% scholarship and 18% HELB loan.
  • Extremely Needy – 70% scholarship and 30% loan.
  • Needy – 53% scholarship and 40% HELB loan. Parents will pay 7% fees.
  • Less Needy- 38% scholarship and 55% HELB loan. Parents will pay 7% fees.

The following factors will be considered when classifying students in the above categories:

Family economic background, i.e., the poverty probability index. Here, the government will use data from the National Bureau of statistics to look at how well-endowed people from your area are.

For instance, if you live in Kakamega, the government will check on the poverty levels in Kakamega. If they are higher than someone living in Kajiado, then the person from Kakamega will receive more funding.

The second factor is the social demographic data. Here, the government will look at the family size and marital status of parents.

The government will check whether the student comes from a single family, has both parents, or whether the parents are divorced.

The other factor is family income and expenditure. The government will consider whether the applicant has other siblings who are also in university. This will also determine where they will be classified and how much funding they will get from the government.

The fourth parameter is whether the student attended private schools during their primary and secondary and whether they received scholarships while in these schools.

Other parameters include whether the applicant is a Person with disabilities, an orphan, and which university they have been placed.

According to Mr. Monari, the government is expected to do due diligence to ascertain the accuracy of the data.

The ministry of education will use data from KRA and NHIF to determine the different categories of student needs.

Information on how filing returns are done and the paying of medical cover will determine the categorization of students.

“For example, if you file ksh 2000 KRA returns, you belong at a certain income bracket. Similarly, if you pay sh 1000 for NHIF, you belong to a particular bracket,” said Monari.

However, students will have a chance to appeal should their financial situation change during the course of their studies.

The scholarships will only apply to students in public universities. Those in private universities will only get loans.

Students joining TVETs will qualify for a maximum 50% scholarship, 30% loan, and shoulder the rest of the fees.

Daniel Mugendi, vice chair of the vice chancellors of public universities in Kenya, said that the new model is cheaper than the previous one where the government paid ksh 16 000 for every student.

According to the ministry education, the new funding model is expected to revive universities, most of which were mired in debts.