The Malaysian Insight

PUTRAJAYA can bear the costs of the National Higher Education Fund Corporation (PTPTN) if it’s managed well, PKR vice-president Rafizi Ramli said.

The Pandan MP suggested that the government could reduce unnecessary spending such as Prime Minister Najib Razak’s private jet that needs high maintenance cost.

“Is the government saying to young graduates and PTPTN holders that it is more important to spend RM80 million on the private jet than to give the money to PTPTN so that they will not need to collect interest from the loan holders?” he told The Malaysian Insight.

Rafizi was commenting on loan holders who are urging that the 1% administrative costs be abolished because it’s a burden considering the high cost of living.

PTPTN said it is not right to abolish the interest in administrative costs for the loans as it is Shariah-compliant and the fees are not costly.

“Even though the 1% administrative cost might seem small but it can be a burden to graduates who only earn RM2,000 when they start working.

“With the high cost of living, especially in the city, the 3% repayment loan is very high,” Rafizi said.

PTPTN said the agency had not burdened borrowers. It had absorbed the 5% interest rate charged after taking loans from financial institutions since the government stopped giving grants in 2003.

Pakatan win would see interests scrapped

Rafizi said that if Pakatan wins Putrajaya in the coming elections, there will be no more administrative fees for borrowers.

Instead, he said, Pakatan will provide grants to PTPTN to reduce the burden of borrowers.

“If Pakatan takes over Putrajaya, we will work hard to provide the grants for PTPTN so they won’t charge interests.

“This is to encourage loan holders to settle their loans quickly.”

Rafizi also said blacklisting the borrowers can affect the economy.

According to the latest Immigration Department statistics, more than 50% of the 622,768 Malaysians barred from travelling abroad since 2010 were PTPTN loan defaulters.

Bernama reported that PTPTN was expected to collect RM4 billion by the end of the year.

Higher Education Minister Idris Jusoh said the target was achievable as the agency had collected RM3.4 billion last year when its target was only RM2 billion.

Since March this year, 284,210 borrowers, who had been blacklisted, have repaid their loans after participating in the Boleh Bincang (Can Discuss) programme. – August 13, 2017.