EVEN with discounts, National Higher Education Fund Corporation (PTPTN) borrowers say they still cannot afford to repay their loans in full.

They said the discounts announced in Budget 2018 by Prime Minister Najib Razak today were good, but the government could help them more if it introduced a monthly discount, which could lessen their financial burden.

Private school teacher Ravinsa, 25, who has to pay RM400 a month for 10 years to settle her RM48,000 student loan, suggested a 10% monthly discount for borrowers who pay their PTPTN loans consistently.

“I welcome the 20% discount for those who settle their outstanding loan in full, but most will never benefit from this because they simply can’t afford to make a lump sum payment.

“Very few can pay their loans in full. Only those who are making huge salaries can do it. The cost of living now is rising and everybody has commitments.

“So I think it would be better if the government gives a monthly discount,” she told The Malaysian Insight.

Apart from the 20% discount, Najib announced a 10% discount for repayment of at least 50% of outstanding debt in single payment, and a 10% discount for repayment via salary deduction.

The discount period ends on December 31 next year.

Najib also said the grace period for loan repayments would be extended from six to 12 months.

Another borrower, Zulaiha Abdul, 24, said she could not afford to furnish her PTPTN loan yet with her meagre monthly salary of less than RM2,000.

She owes nearly RM30,000 and has to pay RM300 a month.

“How can I pay a loan of tens of thousands in full with my salary? After deductions, my take home pay is only RM1,600.

“While I try to save up to pay my loan, the administration charges also accumulate. I agree that a monthly discount is better,” said the youth who only started working six months ago.

Businessman Poh Sang, 30, meanwhile feels the administration charges should also be scrapped to lessen the burden of borrowers.

“I do business for a living. I can’t pay the loan in full. Paying monthly is better.

“The government also should do away with the interests since it is money for education. The PTPTN loan now is like a credit card bill. If you don’t pay monthly, you have to pay the accumulated interests too. They should not be making profit this way,” he said.

PTPTN loan holders sign an agreement to pay administrative charges of 1% to 3%, depending on the level of tertiary education and other considerations, on their loans after a grace period of six months following their graduation.

In August, PTPTN borrowers urged the corporation to scrap the high administration charges, lamenting that the profit-making charges increased their debts further when they already had trouble making monthly repayments.

However, PTPTN chairman Shamsul Anuar Nasarah said the charges would stay as they were shariah-compliant.

PTPTN defaulters make up more than half of the 622,768 Malaysians barred from travelling overseas since 2010, according to Immigration Department statistics. – October 27, 2017.