Should PTPTN loan deductions be reviewed for low earners?

Question

Accepted Answer

PTPTN Loan Deductions for Low Earners Warrant Reconsideration

A Member of Parliament has called for a review of the scheduled salary deductions for National Higher Education Fund Corporation (PTPTN) loanees earning over RM1,000 per month. This proposed repayment method, which involves deductions ranging from two to 15 percent of monthly income, has reportedly been met with dissatisfaction, particularly among younger borrowers. The suggestion is to explore alternative, more suitable repayment strategies that do not unduly burden loanees.
Concerns Over Current Deduction Method

The implementation of direct salary deductions for PTPTN loan repayments, as announced in Budget 2019, has faced criticism. Dr Hasan Bahrom, the Pakatan Harapan MP for Tampin, highlighted that this approach has not been well-received by the public, with a notable lack of acceptance among the younger generation. He expressed that the government should reconsider this direct salary deduction mechanism to prevent placing an excessive financial burden on loanees.
Consideration of Graduates' Financial Capacity

Beyond the deduction method itself, there is a call to assess the broader financial realities faced by graduates. It has been pointed out that the government should take into account a graduate's ability to repay the loan in conjunction with their cost of living expenses. This consideration is particularly relevant for those in urban areas who may be earning around RM1,500 per month, a level at which they might still struggle to meet repayment obligations and cover essential living costs.
Proposal for Alternative Repayment Strategies

In light of the concerns raised, the suggestion has been made to identify and implement a more appropriate and democratic method for PTPTN loan repayments. This implies a need for a system that is perceived as fairer and more aligned with the economic circumstances of the loanees. The objective is to find a repayment structure that balances the need for loan recovery with the financial well-being of graduates.
Budget 2019 Announcement on Deductions

The policy of scheduled salary deductions for PTPTN loanees was initially unveiled as part of Budget 2019. Finance Minister Lim Guan Eng announced on November 2 that the government intended to introduce a system where between two and 15 percent of the monthly income of loanees earning above RM1,000 would be deducted. This announcement has since become the focal point of the current debate regarding loan repayment.

Reading history

Hide →

This history is cleared when the page is closed.

Should PTPTN loan deductions be reviewed for low earners?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends