PETALING JAYA: The National Higher Education Fund Corporation (PTPTN) has the power to order employers to deduct salaries of borrowers, says its chairman Wan Saiful Wan Jan (pic).
He said Section 29 of the PTPTN Act 1997 empowers employers to carry out scheduled salary deductions.
He was responding to the call to amend the PTPTN Act first before allowing employers to deduct the salaries of borrowers and remit the sum to the education fund.
Wan Saiful said he had also taken into account the frustration and views following his announcement of the scheduled salary deductions, and was ready to consider appeals from those who needed special consideration in paying back their education loans.
"I wish to stress that we are always concerned with the people's needs. This new policy is to ensure PTPTN can continue helping future generations.
"The government has the choice whether to give priority to today's borrowers, or ensure the fund's sustainability so that millions of children can have funding to enter higher education institutes in the future," said Wan Saiful in a statement on Thursday (Dec 6).
He added that this was not an easy decision to make as it concerned two groups with different priorities, and was confident the government's decision would ensure the fund's sustainability.
Politicians from both sides of the divide have called for a review of the PTPTN loan repayment scheme.
Wan Saiful had announced that borrowers would see their salaries being deducted every month to repay their study loans from January next year.
The scheme would only apply to those earning above RM2,000, with a deduction between 2% and 15%, depending on the salary bracket.
Did you find this article insightful?