Higher Education Student’s Loans and Grants Board has hiked interest rate on outstanding matured student loans from 10 to 15 percent.
Board Chair Sam Kakhobwe
In a statement released on Monday, Chairperson of the board Sam Kakhobwe says the board has made the decision after it observed that the 10 percent rate of interest was not closer to maintaining the value of the loans which become payable, on average, six years after the first disbursement.
Kakhobwe says general inflation and currency devaluation erode the value of the loans.
Meanwhile the loans board has been able to recover K163 million from January to November 2022.
