Activist belittles move to help PTPTN borrowers

Adam says the current economic situation makes it impossible for many graduates to earn enough to settle their debts in lump sums.

PETALING JAYA: Student activist Adam Adli has disparaged the government’s proposal to ease the burden of borrowers from the National Higher Education Fund Corporation (PTPTN) by giving them discounts and extending the repayment period.

Speaking to FMT, Adam said both measures were meaningless under current economic conditions because the discounts would be given only to those who could afford to settle their debts in lump sums and the extension period was too short.

In presenting his proposals for Budget 2018 in the Dewan Rakyat on Friday, Prime Minister Najib Razak announced a 20% discount for those who fully settle their PTPTN loans. Those who settle 50% of what they owe will be given a 10% discount, which is the same rate given to those who opt to pay through salary deductions or direct debit.

Najib also announced that the grace period for settlement of loans would be extended to 12 months after completion of studies. The current grace period is six months.

Adam said the current economic situation made it impossible for many graduates to earn enough to settle their debts in lump sums or to start their repayment even after a year of getting their first jobs.

He said the government needed to come up with a solution that would address the indebtedness of students.

Adam, who is studying law in a private university, also said PTPTN had become a burden to the government and should be dismantled.

Repaying a PTPTN loan is almost impossible for graduates with a monthly salary of RM2,500, says Asheeq.

He said it was high time for the government to provide free education to citizens.

He dismissed the objection that free education would increase government expenditure, saying there were enough financial resources for it.

“It’s just about how we allocate the money,” he said. “From my understanding, we have been spending too much on things we don’t need, such as the excessive funds channelled to the prime minister’s office.”

Another student activist, Asheeq Ali Sethi Alivi of Universiti Kebangsaan Malaysia, also said it was difficult for fresh graduates to settle their PTPTN debts even with discounts and term extensions.

“With the rising cost of living, especially in Kuala Lumpur, repaying a PTPTN loan is almost impossible for graduates with a monthly salary of RM2,500,” he said.

Khoo doubts that the discounts and repayment extension would help significantly with loan collection.