IF we take a look at the statistics for National Higher Education Fund Corporation (PTPTN) loans, there are worrying indications that Malaysia is heading towards a student loan crisis.
Of the 2.49 million borrowers and RM56.4 billion loan disbursed, only RM8 billion was collected. Some 1.3 million of the borrowers are blacklisted in the Central Credit Reference Information System (CCRIS), and 111,001 are blacklisted by the Immigration Department.
PTPTN needs to put its house in order. Despite being in service for nearly two decades, the high number of defaulters keeps rising despite attempts and methods to collect from the borrowers.
The banks, Employees Provident Fund and Inland Revenue Board never had this extent of defaulters members list or customers in collecting their loan or their monthly members’ contribution for they have an effective electronic collection and enforcement system in place.
PTPTN has been lax in its collection and enforcement system, for ample opportunity had been given to the defaulters on top of the discounts it offered.
Just like the EPF and income tax deduction, employers in the public and private sectors must support the government to collect the money through deduction.
On top of it, PTPTN must have strong leadership and improve its service level to borrowers.
Targets must be set for student loan collection by the collection team going after the defaulters or private debt collectors must be employed by giving incentives.
The state PTPTN must go on a campaign drive to hammer home the message that this money operates on a revolving fund for other students to obtain a loan to pursue their educational goal.
PTPTN needs to reform and it’s crystal clear. It must implement all these reforms and other measures before listing the defaulters in CCRIS. This will ensure the sustainability of the PTPTN fund.
If not, we will be left behind in developing our human capital to compete globally for we are creating a workforce depending on a subsidy mentality.
C. SATHASIVAM SITHERAVELLU, Seremban, Negri Sembilan