Nation

Review PTPTN loan repayment system, say borrowers

KUALA LUMPUR: National Higher Education Fund Corporation (PTPTN) borrowers have urged the next government to review the loan repayment system and allow them to make repayments based on their net pay.

University graduate Atikah Salehuddin said despite being eligible for the PTPTN loan repayment exemption, her application for the exemption was unsuccessful as she had yet to receive her official exam results transcript from her university.

She said this was a bane for her, as her hire purchase loan for a new car had been rejected because she had payment arrears for her education loan.

"They could upgrade the system and notify graduates as to when we need to start our repayments, so we don't forget and we would not have any overdue payments.

"I only knew about my overdue payments when the bank, where I took my car loan, called me. Not even PTPTN itself," said Atikah, who completed her studies in March this year.

She was also confused about the conflicting instructions and information given by PTPTN officers.

Atikah added that she did not get a clear explanation on her loan repayment.

Atikah said she was given the runaround when she called the corporation, with an officer providing her with different information from another.

"At first I was told that I only had to start repaying my loan two years after completing my studies.

"However, when I questioned why I already had arrears in payment, they couldn't give me a straight answer," said the 25-year-old.

She hoped that the new government would look into the loan repayment structure, adding that only graduates who had already secured a job should have to start their loan repayments.

"It would also be better if our loan repayments were made according to our net pay, instead of the loan repayment being scheduled by PTPTN itself," said Atikah.

Another graduate Firdaus Razani, 24, agreed with Atikah's suggestion that the loan repayment should be based on the salary scale.

He said the government could also look into a set percentage to be deducted from the income, similar to the monthly Employees' Provident Fund's deductions.

"This will allow fresh graduates to set a monthly budget without having to worry about additional debt such as PTPTN repayments.

"The corporation should also consider asking borrowers to only make repayments a year after they have started working, instead of one year after completing their studies," he told the New Straits Times.

Firdaus, who is studying art and design at a public university here, said he decided to apply for the PTPTN loan to reduce his parents' burden, especially since he has younger siblings who will also be entering university soon.

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