HELB clarifies when student loan repayment begins

The Higher Education Loans Board (HELB) has clarified when undergraduate student loan repayment begins, correcting a common misconception. HELB stated that repayment does not depend on whether the graduate obtains a government job. According to the board, repayment starts within one year of completing studies, regardless of employment status.

HELB emphasized that repayment begins one year after completing studies, whether borrowers are employed, self-employed, or running a business. The board advised borrowers to plan for repayment based on their individual circumstances, as different options are available for various types of endeavors. HELB's official guidelines state that repayment begins within one year of completing studies or within a period determined by the board for loan recall, whichever comes first.

Borrowers can make voluntary payments before or after completing studies to reduce the outstanding loan balance. HELB offers different repayment channels for employed, self-employed, or business owners, including USSD, mobile app, and the Loanee Self Serve portal. Repayment is processed through the eCitizen Repayment Gateway, and borrowers must seek clearance from HELB after completing repayment.

The board also clarified that employers cannot independently confirm loan repayment status. Once repayment is completed, HELB issues a certificate of clearance. HELB distinguishes undergraduate loans from Jielimishe Loans, which must be repaid immediately upon disbursement. The board also announced a loan recovery campaign offering up to an 80% penalty discount for eligible borrowers.