Tough Consequences May Follow After PTPTN'S '100% Loan' Abolishment

Image source: keadilanrakyat.org

The National Higher Education Fund Corporation (PTPTN) announced its decision to withdraw the giving of 100% loans to prospective students, due to a mere RM8 billion out of the RM56 billion loaned out to previous students having been recovered.

Although the number of students making up for loans taken has increased over the years, it continues to stand at a low number, as PTPTN chairman Datuk Shamsul Anuar Nasarah states the need for a minimum of RM15 billion being recovered in order to continue the 100% loans.

PTPTN, in an attempt to persuade loan repayments, has enforced a system whereby borrowers who have not made up for their loans are listed in the Central Credit Reference Information System (CCRIS) at Bank Negara Malaysia’s Credit Bureau, in order to draw out borrowers who have not repaid their loans but continue to apply for further loans.

Now, due to the previous loans not being paid for, and PTPTN withholding full loans, several deserving Malaysian students may be incapable of pursuing their higher education of choice.

PKR Youth chief Nik Nazmi Nik Ahmad has spoken out against the removal of 100% PTPTN loans, reasoning that "most Malaysians will have difficulty paying for higher education without PTPTN's assistance, and will be forced to borrow from family, friends or worse, loan sharks.”

He further stated that repayment rates continue to remain low to due to graduates’ inability to either find employment, or earn a high salary enough to compensate for their own living costs as well as their PTPN loans. And yet, Nik Nazmi says, “PKR has for years urged the government to find the root cause for the problem. To date, no such study has been commissioned."

Without consideration for a more fair decision on PTPTN’s part, future students may now be forced to search for other ways to fulfill their wishes to study at higher education institutions in Malaysia or abroad, something which, Nik Nazmi states, may lead to dire consequences.

(cover photo courtesy: thestar.com.my)