NATIONAL Higher Education Fund Corporation (PTPTN) chairman Wan Saiful Wan Jan said he is open to receiving views regarding the new student loan repayment mechanism that will come into effect next month, including appeals from borrowers in special circumstances.

“I have received the views and proposals following (yesterday’s) announcement. I have heard their grievances and I am ready to consider the appeals from those who need special consideration,” he said in a statement today.

Wan Saiful announced PTPTN’s new mechanism yesterday, which will see mandatory salary deductions of 2%-15% of borrowers’ salaries for those earning RM2,000 and above.

While the repayment amount for those earning RM2,000 is only RM40 a month, the figure rises dramatically for those earning RM8,000 and above, who will have to fork out 15% of their salary each month.

Wan Saiful said that PTPTN was working with six agencies to obtain income information and details of the employers of PTPTN borrowers in order to implement Scheduled Salary Deduction (PGB) from January.

He also responded to criticisms that employers have no right to directly deduct loan repayments from the salaries of their staff who are PTPTN borrowers without the employees’ consent.

“Some have voiced out that the PGB mechanism runs against the loan agreement signed (with borrowers),” he said.

“I wish to state that it is the through agreements that they have signed, that the borrowers have agreed to pay back (the loan) in accordance to any scheme set out by PTPTN, including wage cuts by their employers.”

Wan Saiful added that Section 29 of the PTPTN Act 1997 empowers the corporation the ability to direct employers to carry out wage cuts.

“Ultimately, I would like to take the opportunity to stress that we will always been concerned with the people’s welfare. This new policy is to ensure that PTPTN will be able to continue to assist future generations.

“The government has the choice of either prioritising today’s borrowers, or ensuring the feasibility of PTPTN so that millions of children today will have the funds to further their education,” he said.

“This was not an easy decision as it involves two groups that have different priorities,” he said.

Najib today slammed PTPTN’s new policy, saying it was ill-conceived and opposed by the Malaysian Employers Federation.

PKR president Anwar Ibrahim said today that he will urge Maszlee and Wan Saiful, who are both from Bersatu, to review the mechanism immediately to ensure it is not unfair or in breach of borrowers’ contracts.

Anwar said the mechanism should be reviewed to make it easier for borrowers to repay their loans. – December 6, 2018.