Collection of Student Loans

Higher Education Loans Board (HELB) Collection of Student Loans Employer s guide to the collection of Student Loans Higher Education Loans Board Loan Recovery and Repayment Department 13 th. Floor, Anniversary Towers, University Way, Nairobi P.O. Box 69489 00400 Nairobi Tel: +254 20 2278 000 Fax: +254 20 344 072 E-Mail: recovery_enquiry@helb.co.ke Website: http://www.helb.co.ke 2010/2011

Contents About us...4 What are student loans?...5 Obligation of the employer...5 When to start making Student Loan deductions...5 How to remit payments to HELB...6 When to stop deduction of Student Loan...6 Refund of erroneous deductions...6 Refund of over-payment...7 HELB inspection...7 Appendix I: Information about employees form...8 Appendix II: Payment options...9 Appendix III: Remittance form...10 Appendix IV: Enquiry form...11 Appendix V: Employer registration form...12 P a g e 2

Collection of Student Loans This Helb book gives general information about the collection of Student Loans scheme and explains your responsibilities as an employer in making deductions and remitting the same to Higher Education Loans Board. This booklet does NOT therefore in any way modify or replace the General Legislation (HELB Act 1995). Information herein are subject to change from time to time as need arises. About us In July 1995, the Government through an act of Parliament established the Higher Education Loans Board to administer the Student Loans Scheme. In addition, the Board is also empowered to recover all outstanding loans given to former university students by the Government of Kenya since 1952 through HELF and to establish a Revolving Fund from which funds can be drawn to lend out to needy Kenyan students pursuing higher education. Further information If on reading this guide, you still have further questions, you can contact us on one of the contacts provided herein. P a g e 3

What are student loans? The Higher Education Loans Board offers loans for postgraduate, continuing education and undergraduate studies. Undergraduate loans must be paid immediately after completing your studies or at any time when the Board may decide to recall its loans. It also offers scholarships and bursaries. Postgraduate loans and Continuing Education loans (under-graduate salaried) are serviced immediately they are disbursed. Undergraduate loans are intended to help needy students whose parents have little or no income. Students whose parents have a reliable family income need not apply. For more details on Loan application please visit our website www.helb.co.ke. remuneration of the loanee, the amount of any loan as instructed by the Board. The employer shall pay every deduction from the loanee s wages or remuneration in the prescribed manner to the Board within 15 days after the end of each month. Employers are NOT responsible for handling queries regarding the employee s Student Loan. Please refer any queries directly to the Higher Education Loans Board (HELB). When to start making Student Loan deductions Upon recruitment, the employer is required to forward details of the employee to HELB. The required details are name and national ID number. (See appendix I). Obligation of the employer Employers are responsible for: Upon the employment of any loanee, to inform the Board in writing within a period of three months of such employment; Upon confirmation by the Board that such a person so employed is a loanee, to deduct from the wages or Upon confirmation by the Board that such a person so employed is a loanee, the employer shall make deduction from the wages or remuneration of the loanee, the amount of any loan as instructed by the Board. The Board issues a billing schedule as a start of payment instructions. P a g e 4

A loanee may authorize his/her employer to deduct the loan repayment and to remit to the HELB. with the total deductions in the remittance form. Upon receipt of payment, HELB shall confirm by issue of receipts. If on receipt of a billing schedule from HELB, an employee claims never to have received a Student Loan or has cleared repayment, the employer should start making deductions and continue doing so as per the billing schedule unless otherwise advised by HELB. How to remit payments to HELB The employer shall pay every Student Loan deduction from the loanee s wages or remuneration to the Board within 15 days after the end of each month. Late payments will attract a penalty. All payments are payable to Higher Education Loans Board. (See appendix II for payment options). For the purpose of allocation to Student Loan accounts, all payments from employers must be accompanied with remittance form (see appendix III for the remittance form). The remittance form can be e-mailed to remittance@helb.co.ke. No payment shall be accepted without the remittance form. Amount remitted must tally New employers New employers can register with HELB by filling the employer registration form (see appendix V for the employer registration form). Upon registration, HELB Employer code number will be assigned and the same should be quoted by the employer as reference when making payments or enquiries.e-mail form to: billing@helb.co.ke When to stop deduction of Student Loan There are only 3 circumstances when the employer should stop making Student Loan deductions: Upon expiry of the repayment period as per the Billing schedule. Upon receipt of a Stop Order letter from the Board. When a loanee leaves employment (kindly inform the Board). An employer should NOT cease deductions on unilateral advice of the employee. Refund of erroneous deductions An erroneous deduction refers to deductions made without billing from HELB or after the loan had cleared or after a stop order was P a g e 5

issued by the Board. Please note that clearance must be confirmed by the Board. Erroneous deduction done within the month before remittance to HELB can be refunded directly by the employer. Erroneous deductions already remitted to HELB can only be refunded by HELB. Kindly refer the employee to HELB. Please note that the employer cannot reduce the remittance amount to make refund of amounts already remitted to the Board. For HELB to make refund, a notification from the employer confirming the erroneous deduction and an application for refund from the employee must be received at HELB by filling the enquiry form. (See appendix IV for enquiry form). Refund of over-repayment It is possible for a Student Loan account to be over-paid. If that happens, the loanee shall receive a refund of the over-payment from HELB and not the employer. For HELB to refund, an application for refund must be received at HELB by filling the enquiry form. (See appendix IV for enquiry form). E-mail form to: refund@helb.co.ke HELB inspection HELB is in employment of inspectors who for the purposes of ascertaining whether the provisions of the HELB Act 1995 have been complied with within any premises or place liable to inspection under the HELB Act have power to enter such premises or place at all reasonable times and to examine every person whom they find therein. Penalties charged on the employer This booklet is only a guide and in no way modifies the general legislation and only reflect the position at the time of writing. It does not affect any right of appeal. The relevant legislation is contained in the HELB ACT 1995. If any employer fails to comply with the provisions of the HELB ACT 1995 the Board may by order impose a penalty. These scenarios include but not limited to: Where an employer fails to deduct any loan repayment from a loanee as instructed by HELB; Where an employer deducts any loan repayment from a loanee and does not pay such deductions to the Board; Where an employer fails to remit deductions to the Board within 15 days after the end of each month; Where an employer fails to notify the Board that he has in his employment a loanee within three months. Where any person who wilfully delays or obstructs any HELB inspector in the exercise of any power under the HELB ACT 1995. P a g e 6

Appendix I: Information about employees Send to HELB for the purpose of identfying Student Loan liability (Please form e-mail to: billing@helb.co.ke ) EMPLOYER NAME EMPLOYER DETAILS POSTAL ADDRESS & POSTAL CODE PHYSICAL ADDRESS TELEPHONE (FIXED LINE) TELEPHONE (MOBILE) CONTACT PERSON/TITLE E-MAIL ADDRESS EMPLOYEES DETAILS S/No. NATIONAL ID NUMBER (*required) STAFF NUMBER NAME OF EMPLOYEE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 P a g e 7

Appendix II: Payment options Details of how to remit payments to HELB 1. CHEQUES/CASH DEPOSIT, EFT, STANDING ORDER, All payments are payable to Higher Education Loans Board, by crossed cheque, Bankers draft, direct transfer/standing order/eft or CASH DEPOSIT to Helb collection A/C in any of the following banks: BANK ACCOUNT NUMBER BRANCH ELECTRONIC FUNDS TRANSFER (EFT) Citibank 300 040 012 Nairobi SWIFT CODE : CITIKENA Co-operative Bank 011290 612 228 00 University-way SWIFT CODE : KCOOKENA Barclays bank 501 8216 Barclays Plaza SWIFT CODE : BARCKENX Kenya Commercial Bank 1103 266 314 University-way SWIFT CODE : KCBLKENX Standard chartered Bank 010 801 826 4700 Koinange street SWIFT CODE : SCBLKENX Equity bank 055 029 357 3408 Equity Center SWIFT CODE : EQBLKENA National Bank of Kenya 010 016 039 1100 Harambee Avenue SWIFT CODE :NBKEKENX 2. MOBILE PHONE MONEY TRANSFER (M-PESA) MOBILE PHONE MONEY TRANSFER (M-PESA & AIRTEL MONEY) Using M-PESA, please enter HELB business number as 200800 Using Airtel Money, please enter business name as HELB 3. PESAPOINT AND EQUITY BANK ATMs To repay your HELB loan through ATM, ensure that you include your NATIONAL ID number as your account reference number. 4. CREDIT CARD or ATM (Debit) Card Please note: Payments can also be made through Credit card. This is done by signing the CREDIT CARD AUTHORIZATION FORM (CCA) and then forwarding the same to HELB. VISA branded credit cards or debit (ATM) cards can also be swiped at HELB offices. Please quote your national ID number in all payments and enquiries; Payments have to be made by 15 th of the following month. Payments made after the deadline, will attract a late remittance penalty of 5% of the total amount per month; Payments (cheques, EFT, deposit/advice slips) must be submitted to HELB attached with remittance form (see appendix III) P a g e 8

PAYMENT INFO EMPLOYER Appendix III: Remittance Form To be submitted with every payment made to HELB (please download form from www.helb.co.ke ) HELB MONTHLY REMITTANCE SCHEDULE (TO BE DULY COMPLETED WITH EVERY CHEQUE/DEPOSIT SLIP/EFT SUBMITTED TO HELB) *Please email the remittance form to: remittance@helb.co.ke *Deadline for remittance is 15th of the following month, late remittance will attract 5% penalty per month outstanding. *No payment shall be accepted without remittance schedule HELB EMPLOYER CODE NUMBER NAME OF EMPLOYER POSTAL ADDRESS & CODE PHYSICAL ADDRESS E-MAIL ADDRESS TELEPHONE NUMBER MOBILE NUMBER S/No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 PAYROLL MONTH CHEQUE NUMBER/TYPE OF PAYMENT DATE OF PAYMENT/EFT/DEPOSIT HELB RECEIVING BANK EMPLOYEES DETAILS ID NAMES NUMBER STAFF NUMBER AMOUNT TOTAL 0.00 P a g e 9

Appendix IV: Enquiry Form To be submitted to HELB by loanees for the purpose of processing an enquiry (please download form from www.helb.co.ke ) 18th Floor, Anniversary Towers, University Way, P.O. Box 69489 00400 Nairobi. Tel: +254 02 251877, 246590-1, 226080, 226205, 249268 Fax: +254 02 252330 E-mail: helb@helb.co.ke Website: http://www.helb.co.ke 1. NATURE OF ENQUIRY (Choose appropriately) (i) Want to start repaying loan (iii) Refund due to over deductions (v) Clearance Certificate (ii) Loan balance (statement) (iv) Refund due to erroneous deduction (Not a loanee) 2. CLIENT DETAILS ((Please note that the highlighted * parts are MANDATORY) NAMES AS AT UNIVERSITY * NATIONAL ID no. * CURRENT ADDRESS * PIN NUMBER TOWN * UNIVERSITY REG no. * POSTAL CODE * UNIVERSITY ATTENDED * TELE PHONE * DEGREE/DIPLOMA * CELL PHONE * COURSE/FACULTY * EMAIL YEAR OF ENTRY TO UNIVERSITY * YEAR OF COMPLETION * 3. EMPLOYMENT DETAILS CURRENT EMPLOYER * EMPLOYEMENT No. ADDRESS/POSTAL CODE TOWN TELEPHONE FAX E-MAIL 4. TO BE COMPLETED BY T.S.C EMPLOYEES PROVINCE * DEPARTMENT * 5. LOAN REPAYMENT STATUS (Please indicate repayment period) NAME OF EMPLOYER PAYROLL NUMBER MONTHLY INSTALLMENT AMOUNT From PERIOD To * * * * * 6. BANK DETAILS (For refund cases only) BANK NAME * BRANCH * ACCOUNT NAME * ACCOUNT NUMBER * *Signature: *Date: Please note that refunds are paid through electronic fund transfer to banks recognized by the Kenya bankers association P a g e 10

Appendix V: Employer registration form To be submitted to HELB by new employers (please download form from www.helb.co.ke ) HELB LOAN RECOVERY DEPARTMENT 13th Floor, Anniversary Towers, University Way, P.O. Box 69489 00400 Nairobi Tel: +254 20 2278 000 Mobile: 0722/0733 205292 Fax: +254 02 344072 E-mail: recovery_enquiry@helb.co.ke Website: http://www.helb.co.ke EMPLOYER REGISTRATION FORM EMPLOYER NAME EMPLOYER PIN NUMBER POSTAL ADDRESS & POSTAL CODE PHYSICAL ADDRESS TELEPHONE (FIXED LINE) TELEPHONE (MOBILE) CONTACT PERSON & TITLE E-MAIL ADDRESS INDUSTRY SECTOR (e.g. financial, NGO, service, manufacturing, educational, government, local authority, professionals, diplomatic missions, Agricultural) P a g e 11