Identify those who really cannot afford to repay, PTPTN told

 Education expert Noor Azlan Ahmad Zanzali says the government should differentiate 'wilful' defaulters from those with no means of paying back.

PKR Youth chief Kamil Munim has asked the government to consider a targeted mechanism to write off PTPTN debts for the hardcore poor and low-income borrowers.

PETALING JAYA:

The government must differentiate wilful National Higher Education Fund Corporation (PTPTN) defaulters from those who genuinely cannot afford to settle their debts, following calls to write off such debts, an education expert said.

Noor Azlan Ahmad Zanzali of Universiti Muhammadiyah Malaysia said the real issue is identifying the financial circumstances of each borrower group.

“There are those who want to repay (their loans) but cannot afford it as they are unable to secure jobs that match their qualifications,” he told FMT.

He was responding to a proposal by PKR Youth chief Kamil Munim for the government to consider a targeted mechanism to write off PTPTN debts for hardcore poor and low-income borrowers who cannot repay their loans.

Kamil said the wing was not asking for all debts to be waived, but “those who could afford to pay should pay”.

Noor Azlan said the government should keep in mind that some PTPTN defaulters were earning a decent income, while others were surviving on meagre salaries.

Affendi @ Ewan Matore of Universiti Kebangsaan Malaysia said there was a need for the government to refine its targeted approach to resolve the issue.

“There has to be a clear definition and criteria (to be eligible for a waiver) so aid is not provided indiscriminately,” he said.

Affendi suggested that eligibility should not depend solely on the borrowers’ income declaration to PTPTN and their financial situation, but also their net income data, household commitments, and tax profiles.

He said assistance could be provided to the hardcore poor after a financial assessment as well as to those who can prove that they have no regular source of income or are permanently disabled. - FMT