THE National Higher Education Fund Corporation’s (PTPTN) proposal to suspend loans for university courses with repayment rates below 50% warrants serious critique.
This suggestion unfairly shifts the responsibility for student loan defaults from graduates to current students without addressing the underlying issues that contribute to poor repayment rates.
PTPTN CEO Ahmad Dasuki Abdul Majid has suggested that they are considering halting loans for courses with repayment rates below 50%.
This raises a significant concern: Why should current students bear the consequences of debts incurred by graduates?
The individuals carrying the debt are those who have completed their studies, yet if this proposal goes ahead, it will be prospective students who suffer, unable to access loans. The rationale behind this proposal is highly questionable.
Furthermore, suspending loans for current students will not improve repayment rates among graduates.
Do PTPTN officials genuinely believe that graduates, already in the workforce, will feel compelled to repay their loans out of guilt for the situation facing students still completing their studies? This is both an unrealistic and misguided expectation.
Many students from disadvantaged backgrounds rely heavily on PTPTN loans to pursue higher education. Denying these loans based on the repayment failures of others only penalises those who have no control over the situation.
Such a move would also send a deeply flawed message: that the innocent should suffer for the actions of the irresponsible.
If the government is serious about improving PTPTN’s repayment rates, the focus should be on those who have defaulted on their loans.
To reiterate MCA Youth’s previous suggestion, one solution could be to introduce a more flexible and practical repayment system, similar to the Monthly Tax Deduction (PCB) model, where repayments are automatically deducted from wages.
This would help borrowers manage their finances more effectively and enable the government to recover loans more efficiently.
Additionally, the government could consider introducing restrictions on certain activities, such as purchasing property, cars, or travelling abroad, for PTPTN defaulters to remind them of their repayment obligations. These measures must be enforced rigorously to ensure they are effective.
Ultimately, the responsibility for repaying debts lies with the debtors themselves. It is simply not fair to shift that responsibility onto others, especially those who are not at fault. – Nov 15, 2024
Saw Yee Fung is the MCA Youth secretary-general.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
