Study loan borrowers fume over Pakatan’s broken promises

Zaim Ibrahim Zaim Ibrahim Updated 7 years ago · Published on 3 Nov 2018 7:00AM · 17 Comments

PTPTN borrowers are upset that they cannot defer repayments despite the promise in the Pakatan Harapan election manifesto. – The Malaysian Insight file pic, November 3, 2018.

NATIONAL Higher Education Fund (PTPTN) borrowers are again upset with the Pakatan Harapan government, this time over the move to implement scheduled deductions from those earning RM1,000 and above.

Graduates who owe the fund said the announcement under Budget 2019 is a breach of the government’s election promise to let borrowers delay their loan repayments until they earn a RM4,000 a month.

The government yesterday said borrowers can repay their PTPTN loans through scheduled deductions of between 2% and 15% from their monthly income if they earn more than RM1,000 a month, starting next year.

Universiti Malaya graduate Mohd Nawawi Mohd, who now works in the banking sector, said borrowers like him believed PH’s election manifesto and had welcomed leeway given to delay their loan repayments.

“At salaries starting from RM1,000, what is there left after repaying the PTPTN loan and other commitments?” he told The Malaysian Insight.

Nawawi said the amount of deduction between the 2% and 15% band should be decided by the borrower, not PTPTN.

“Let the borrower decide how much should be deducted, so that we can be consistent with our monthly repayments.”

Another graduate from Universiti Teknologi Mara (UiTM), Muhd Shamel Suhaimi, said he felt cheated by the announcement.

“At first, they said we can delay our repayment until we earn RM4,000. Now they say we have to start from RM1,000 (monthly salary).

“RM1,000 is barely enough for a borrower to live on and repay his loan. It will be really difficult for those living and working in cities where the cost of living is higher.”

PH promised the deferment until borrowers earned RM4,000 but found it difficult to implement once it came to power.

(From left) Finance Minister Lim Guan Eng, Prime Minister Dr Mahathir Mohamad and Deputy Prime Minister Dr Wan Azizah Wan Ismail arriving at Parliament to table Budget 2019. Student loan borrowers are fuming that the budget stipulates that borrowers are to begin repaying their loans if they earn more than RM1,000 monthly. – The Malaysian Insight pic by Seth Akmal, November 3, 2018.

It managed to keep another part of its election promise – to remove loan defaulters from a travel blacklist, but it is still being criticised for failing to keep its main promise to PTPTN borrowers.

Anas Mustafa, who took a PTPTN loan to study at the International Islamic University Malaysia, said he was unhappy with PH’s promise then and is upset now with its latest announcement.

“Either way, I’m not happy. To wait till graduates earn RM4,000 is unrealistic. With stagnant wage growth, we won’t even earn that salary in five years.

“But asking us start repayments at a RM1,000 salary is also difficult. If we repay the minimum at a 2% deduction, with other deductions from one’s salary, it amounts to a lot.”

Borrowers were also divided on whether loan reductions for graduates from B40 households who obtained first-class results was fair.

Civil servant Mohd Hafiz Hassan, who still has a PTPTN loan to repay, said it was a good move to “equalise” the B40 and middle-income (M40) borrowers.

“It’s fair because the M40 can afford to repay their loans.”

Nawawi, however, said it was unfair to others who worked hard for their degrees.

Other incentives under Budget 2016 that the government announced to boost PTPTN repayments are tax exemptions to companies which assisted their employees settle the balance of their education loans.

Borrowers aged 60 and above earning less than RM4,000 will also have their debts written off. This only applies to 350 people and involves RM4.2 million. – November 3, 2018.

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Comments

  • It is irresponsible to borrow money and not pay.

    Posted 7 years ago by Mo Hisham · Reply

  • Seriously..... its 20 ringgit a month, Bayar la

    Posted 7 years ago by Chai Hin Goh · Reply

    • You are right. Less one teh tarik per week

      Posted 7 years ago by Kenneth Tan · Reply

  • Hello, you borrowed money, you pay la. Think of other students who need the loan. Typical selfish Malaysian attitude.

    Posted 7 years ago by Yoon Fatt Ng · Reply

  • thats why its called a loan
    must pay la
    typical when ask to pay back
    even rm20

    Posted 7 years ago by Lan Lan · Reply

  • What is the starting salary of a fresh graduate? It is around RM1800 to RM2000 per month. So you cannot repay even RM200 per month? Most fresh graduates are around 22 years old and living with their parents. You do not need to buy a car or house straight away or use credit cards. Be responsible.

    Posted 7 years ago by Gerard Lourdesamy · Reply

  • What an ungrateful lot of youngsters, for merely RM20 per month is considered a big thing. For those who comes from the rural and working in urban areas RM20 would not cause a deep hole in your pockets and for those who are staying with parents and working RM50 to RM150 would not pose any issues. Its the mentality. Yes, PH declared otherwise based of a wrong assumption that the nation kitty is good before the election but lets put the facts and figures now and as educated people you can appreciate that for the honesty and transparent PH are. Given time if things improved I am sure the loans would be look into. The loans are RAKYAT funds and its only fair for it to be paid for the next batch cum generation to earn and given a place for their higher education which you have been given a chance.

    Posted 7 years ago by Teruna Kelana · Reply

  • Kalau taknak bayar balik, hari hari makan pun tak kenyang. Boleh sendiri saran berapa nak bayar..kerajaan akan dengar dan sambut ikhlas

    Posted 7 years ago by Arshad Lazim · Reply

  • Tanggung jawab sebagai seorang rakyat kan sudah diajar dalam pendidikan negara? Pendidikan makin tinggi makin berat tanggung jawab, in mesti difahami.

    Posted 7 years ago by Tanahair Ku · Reply

  • Purely selfish... when you needed the money to study, the government helped you, and now when its time to pay back, you criticise the government and give excuses.
    Think of other new students who need funding. If you dont pay back, it is going to be difficult for PTPTN to continue.
    Change your mentality!

    Posted 7 years ago by TTs Take · Reply

  • So, one more promise broken...??
    LGE taking a leave from Mahathir - election manifestos are not necessarily promises?

    Posted 7 years ago by Rock Hensem · Reply

  • Kebanyakan yang membantah syor bayaran adakah melayu.......mentality asuhan umno.

    Posted 7 years ago by Azis Yusoff · Reply

    • ...membantah syor bayaran adalah melayu....

      Posted 7 years ago by Azis Yusoff · Reply

  • The principle should be that if you borrow you must pay back as funds needed for future students. Trouble with these students is they cant be bothered to save enough and pay back the loan they are what is wring with Malaysia - believing they have a right to subsidy while those of us who never borrowed but worked to get the funds for our studies now find that the money we pay as tax has to go to fund these kind of people. We had a hard life too with lack of funds yet we worked and scrimped to save enough. If u cant do this fine. But if you borrow you pay not defer till when you think you are comfortable enough to pay.

    Posted 7 years ago by Michael Raj · Reply

  • What is there to fume ? you pinjam duit tak bayar balik. Are you a learned responsible person. In this case employers should check job applicants pay their study loans to show their simple integrity and responsible. Otherwise how to trust them to perform company responsibility. !

    Posted 7 years ago by TC BOY · Reply

  • I wonder what kind of studies these borrowers undertook? Borrowed money and now fuming over the need to return? The government needs the money to lend to other needy students. Just pay back whatever you owe and be a responsible citizen!

    Posted 7 years ago by Debbie Ong · Reply

  • These people are no moral integrity. Government borrow money for u to study and yet you refuse to pay. RM1,000 salary it only draw you 2% for repaying your loan which is only RM20, stop going Starbucks once or twice then you able to do it. Or in other way round become high scholar. Then you no need to pay. People lend you money obviously you have to pay back, not like they slaughter you 20%...

    Posted 7 years ago by Kevin Teh · Reply