Fresh graduates and young Malaysians are relieved with the government's decision to defer student loan repayments as they struggle to hold cash in their hands.
On June 28, Prime Minister Tan Sri Muhyiddin Yassin announced several initiatives, including a deferment on education loan repayments under the Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (Pemulih) assistance programme.
He said the deferment would be offered to borrowers of four study loans — the National Higher Education Fund Corporation (PTPTN), federal education loans under the Public Service Department (PSD), Mara education loans, and loans under the Skills Development Fund Corporation (PTPK).
Muhammad Mahfuz Mamat, 26, welcomed the student loan moratorium as it provided relief for fresh graduates while they struggled to secure their first job.
Job-hunting, he said, had turned into an exhausting and frustrating experience as Covid-19 ravaged the country.
"The student loan moratorium is a timely initiative as fresh graduates need not fret over their repayments.
"They can use the cash they have to stay afloat first until they land a job," he told the New Straits Times.
Siti Nazia Azwani, 29, who taught at a private school, said the loan deferment was very beneficial for her to increase her savings as those working in the private sector were facing a dilemma in job security.
"The pandemic has not been kind to most people. Many private sector workers are forced to take pay cuts or even be retrenched due to economic hardship.
"So, it is crucial for people to have cash in hand instead of getting tied down with other commitments," she said.
Home-cooked food purveyor Zulaika Suliman, 27, expressed relief over the PTPTN loan moratorium as the Movement Control Order (MCO) had taken a bite into her sales.
"My sales have taken a dip due to movement restrictions and the work-from-home implementation during this MCO period.
"The education loan moratorium for PTPTN borrowers has allowed me to rollover some cash for my expenditure and food items," she said.
Norliyana Zafirah Zulkefley, 24, said she would continue to repay her Mara education loan so that the moratorium could benefit the ones who were really affected by the pandemic.
"Currently, I work as a physical design engineer for a semiconductor company in Penang. Since I am financially stable, it is only fair for me to repay my loan on time.
"However, not all my friends are in the same boat. The student loan moratorium gives breathing space to borrowers who are struggling to land their first job or those under financial distress.
"Initially, my loan repayment duration was until 2044, but since Mara provided a reduction, I only have to pay 15 per cent of the full loan.
"Instead of the moratorium, I opted to reschedule my loan repayment with a monthly instalment of RM100 for 12 months.
"At this rate, I will able to settle my loan repayment within five to 10 years," she said.
Norliyana advised borrowers who were financially stable to be responsible and continue repaying their loans so that the moratorium would not impact Mara's cashflow.
Under the deferment, PTPTN borrowers would be provided with a three-month targeted moratorium.
PSD federal education loan borrowers would be able to defer their loan repayment and payment of compensation claims for federal scholarships for up to six months.
Mara education loan repayments will be deferred for three months, or a rescheduling of the loan repayment with monthly instalments as low as RM100 for 12 months.
Meanwhile, PTPK loans would be postponed for three months.
Muhyiddin said the education loan moratorium, which was estimated at RM400 million, would benefit 1.6 million people.