TAYLORIANS VOICE OPINIONS ON MANDATORY PTPTN REPAYMENT 

National Higher Education Fund Corporation (PTPTN) borrowers from Taylor’s Lakeside Campus have expressed their opinion about the government’s consideration of mandatory monthly PTPTN repayments via direct salary deductions.

 

Mok Jia Yee, 20, said the strategy is a wise choice by the government.

 

"It can insist on deducting a fixed percentage of the salary, which helps ensure that the debt is paid off on time, also reducing the burden on borrowers," said the Bachelor Interior Architecture student.

 

As circumstances may occur where they are unable or unwilling to repay the loan, this method will ensure that all loans from each month repayments, she added.

 

"I also think that it will help me allocate funds or manage my finances because a fixed amount is already deducted from my account every month, so in a way, it is budgeting for me, as this monthly spending is mandatory," said Mok.

 

Beck Lyn, 19, a Diploma in Communication student, said it's alright to deduct from her bank account because it doesn't affect her much, and it will be more convenient for her as she might forget to pay her loans. 

 

“Although some may say that this scheme will impact their disposable income, the loans still need to be repaid at the end of the day whether or not through the program, and the amount deducted is just the amount we need to pay each month,” she said.

 

“This money is also going back to funding new students, so I think it is a good thing to facilitate sustainability in the country's economy," she added. 

 

It was reported that the government is considering implementing a mandatory monthly deduction for PTPTN study loan repayments through the ICL program, due to low repayment rates from borrowers.

 

According to Prime Minister Anwar Ibrahim, the total outstanding owed to PTPTN was RM 66.9 billion as of May, which could fund the loans for around 2.5 million new tertiary students if repaid. 

 

Incentives will be offered to people and employers who make repayments to encourage more borrowers to fulfil their civic responsibilities for future students who wish to pursue higher education but are unable to pay for it.
 

Tiu Yu Qin, 20, a student from Bachelor of Mass Communication (Public Relations & Event Management) student, said, “I am worried that I will lose the loan repayment discount if this scheme is implemented.”

 

Sometimes some discounts and incentives are given to loan repayers to encourage them to pay their loans, but with this scheme implemented, there is no reason for the government to provide them,” said Tiu. 

 

"I feel conflicted about it because while it saves me time in the application process in repayment, but I would also lose the repayment discount," said Tiu.

 

Lu Jia Wei, 19, said the government would place the students on a "blacklist" if they don't repay the PTPTN loans, which prevent them from leaving the country.

 

"If you don't plan to leave the country, another thing that would be affected is your credit score, which affects your other personal loans. This mandatory loan repayment prevents that from happening,” the Diploma in Hotel Management student added.

 

“Besides, I don't think the amount you need to repay every month is that high. If you do have a source of income, the repayment is manageable,”  she said.