KUALA LUMPUR: Refusing to settle National Higher Education Fund Corporation (PTPTN) loans will lead to non-sustainable higher education financing, said economist Dr Madeline Berma.
Not only that, she said defaulters who failed to fulfil their responsibility would cost future borrowers a chance to get better education and this, in turn, would affect the economy in the long term.
“Your refusal to settle debts now will cost others their future. The culture of indebtedness among youth will reduce the probability of providing education funds for future graduates.
“This will reduce the ability of Malaysians to benefit from the knowledge-based economy and Fourth Industrial Revolution.”
Berma said there were two approaches to resolve the issue: incentives and penalties.
She suggested a “student loan forgiveness programme” that provided leeway for graduates of specific courses.
“This programme would cater for students pursuing careers in fields needed to keep our economy running, like teachers, doctors, nurses and engineers.”
As for penalties, Berma agreed with PTPTN’s previous method, which was imposing travel bans on defaulters.
“But you must give them a warning and not let them find out when they are at the airport.”