‘Keep PTPTN payment system’

PETALING JAYA: National Higher Education Fund Corporation (PTPTN) borrowers believe the corporation should maintain their current repayment methods.

Chemical engineer Susheela Sega­­ran, 29, said servicing her loan according to the amount stated in her agreement is “just easier”.

“I have other financial commitments and I made them after considering my PTPTN monthly instalments,” she said.

Susheela was commenting on PTPTN’s soon-to-be-launched public consultations focusing on loan repayment mechanisms.

PTPTN will also hold roundtable and townhall sessions to gain public feedback on loan repayment methods.

Susheela had no objection to the proposal deferring loan repayments for those earning less than RM4,000 a month.

She pointed out there are many borrowers who had been servicing their PTPTN loans faithfully and should not be punished for the actions of defaulters.

The Pakatan Harapan government had pledged that repayment was only for those earning more than RM4,000 per month in its mani­festo. However, it said it was unable to meet the promise because of the country’s debt situation.

A loan borrower who wanted to be known as Jaycee, 27, said salary deductions were the best method for PTPTN to get back the funds.

“This method can eliminate all other problems PTPTN faces with defaulters. Make it compulsory for borrowers to declare they are PTPTN borrowers to employers like when applying for credit cards or car loans.

“PTPTN could set the percentage of auto-deduction at 5% from a base salary of a certain threshold, starting from maybe RM2,800.

“However, I think that a borrower should not have to pay back the loan when he or she is unemployed but resume repayment once back in the workforce,” said Jaycee, who is a house officer at a hospital in the Klang Valley.

S. Vairemuthu, 25, who just started repaying his loan this year, agrees with Jaycee.

“Deduction from salary means that the loan would be stretched out over time. I do not have to worry about paying it back in a certain time frame, or a monthly deadline like how I would pay for my car instalment,” said the graduate who started working at an advertising firm.

Qeef Latif, 28, said he chose the auto debit deductions to repay his PTPTN loan.

The packaging designer from Shah Alam said if he had one suggestion to the corporation, it would be to inform borrowers of the status of their loans.

“I was given the loan to fund my diploma studies, but not for my degree. After completing my degree, I was shocked to find out that I had accumulated so much debt!

“I was informed that I had begun accruing debt from the time I completed my diploma, instead of my degree.

“I was blacklisted. I wish they had informed me soon after I completed my diploma,” he added.