SOME of the students who have taken loans from MIC-owned Maju Institute of Educational Development (MIED) to complete their tertiary education have requested for a waiver of the interest on their loans.
MIC president Datuk Seri S. Samy Vellu said they did not realise that MIC had also borrowed from other sources, including banks, to provide the study loans.
“If we give them exemptions, who is going to pay the interest? Do they want us to absorb it?” he asked.
Speaking at the presentation of RM2.9 mil in study loans to 406 students recently, he said MIED was facing a tough time getting the students to repay the loans.
“There are some who had taken loans of more than RM50,000 and make RM100 monthly repayments. They would have to continue payment for about 40 years,” said Samy Vellu.
He said MIED would have problems providing financing for students in the future if those who had completed their studies did not repay the loans.
Samy Vellu said there has been increase in the number of loan applications but only a small number was being considered due to financial limitations.
He said MIC had set up Tafe College and Asian Institute of Medicine, Science and Technology (AIMST) for students to pursue their education locally but many were keen to study abroad.
During the ceremony, 45 students studying at AIMST, 178 students studying medicine in local and foreign universities, 127 students of private universities and 17 from government universities received cheques from Samy Vellu.
He said the MIED had disbursed more than RM7bil to more than 9,500 students since 1984.