Repay PTPTN loans to fund B40 students, say M’sians

PETALING JAYA: Pay back your National Higher Education Fund Corporation (PTPTN) loans because a debt is a debt, according to feedback.Copywriter Myra Tan Lee Lee, 27, said the PTPTN already emphasised many times that borrowers could discuss with them to pay back as little as RM50 a month.

She said the Income Contingent Loan Repayment system, a method used in Australia, Hungary and Thailand, should be implemented locally.

“If this method is implemented in Malaysia, it would eliminate many of PTPTN’s problems of collecting from borrowers. PTPTN could work with employers on this,” she added.

Tan was commenting on PTPTN conducting a public consultation exercise on ways to improve its financial viability.

She said the RM1.7bil paid by the government on interest alone could be put to better use.

“It could provide better facilities to institutions and fund deserving students from the B40 group who want to study but can’t afford it,” she said, adding that the PTPTN was meant to help those without financial means to pursue tertiary education.

On Thursday, PTPTN deputy chief executive (policy and operations) Mastura Mohd Khalid said the repayment on the principal alone ranged from RM3bil to RM6bil a year, while the interest borne by the government was more than RM1.7bil a year.

The corporation’s current debt of RM40bil is bigger than the 1MDB’s debt of RM38bil, and that the money is not coming from the coffers of taxpayers but from banks and the financial market.

Psychology student Low Jean Hwee, 22, said deducting a certain percentage from the borrower’s salary was an ideal way to fill up PTPTN’s coffers.

A loan borrower who wanted to be known as Natasha Nair, 27, said borrowers should be more considerate and think of how defaulting on their loan would affect future borrowers.

“Defaulters are depriving B40 students the chance to make a better life for themselves through education.

“PTPTN isn’t asking for the full amount at one go. The least you could do is finance your loan bit by bit,” said the house officer at a hospital in the Klang Valley.

Technician Malik Abdul Osman, 29, said the travel ban is a good measure to force defaulters to pay up.

The PTPTN is currently conducting a public consultation online at

The survey includes accurate and up-to-date facts regarding the PTPTN and a summary of the 10 main ideas on viable loan repayment schemes and measures to ensure the loan’s sustainability.

There is also a section for additional feedback and ideas, and this will be on until June 13.


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