PTPTN Chairman: Borrowers Who Defer Loans To Pay For Their Cars Are “Selfish”
Yesterday, 4 November, the National Higher Education Fund Corporation (PTPTN) chairman Wan Saiful Wan Jan hit out at borrowers who postpone their repayments for 'unreasonable' reasons
In a report by New Straits Times, Wan Saiful said that some borrowers applied for a postponement of their loan repayment because they had to pay for their car loan instalments instead.
He called such reasons unreasonable and a reflection of a selfish culture in society, where errant PTPTN borrowers do not know their priorities.
If they cannot pay because they are not working (yet) or parents are sick, we can consider that, but if it is to buy a car, that is not fair.
"This concerns attitude. What is their priority. They have benefited from PTPTN, completed their studies, got jobs, and should settle the loan repayments so that others can also enjoy the benefit," he added.
Wan Saiful also said the government's move to implement a scheduled repayments system is an acknowledgement of PTPTN's problems in solving its huge debt
In a separate New Straits Times report on Friday, 2 November, he said the announcement would fulfil the organisation's plea for help.
"I would like to thank [Finance Minister Lim Guan Eng's] team for tirelessly discussing with us, as well as to have direct discussion with me several times, on how the 2019 Budget can speed up the improvement of PTPTN," said Wan Saiful.
The system will ensure repayment of PTPTN loans through scheduled deductions of between 2% to 15% from the borrower's salary.
The percentage will be determined based on the borrower's monthly income.
Additionally, as part of PTPTN's reform agenda, it will not be introducing any discounts next year.
Meanwhile, Finance Minister Lim Guan Eng said he accepted criticisms from the rakyat over the government's broken promise to allow deferment of PTPTN loan repayments
"I accept the criticisms as we really want to implement it (the promise to allow deferment of PTPTN loan repayments), but it is hard to do it due to the current fiscal position," he told Bernama.
"What can we (government) do right now? If Jho Low had not taken away RM50 billion, maybe we can do it."
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