THE MCA Education Consultative Committees today urged the government to consider several options and initiate action that balances accountability with compassion, to tackle, and then alleviate the issue of unpaid PTPTN loans.
Committee Chairman Datuk Dr Mah Hang Soon said the outstanding amount due from National Higher Education Fund Corporation (PTPTN) loan defaulters has hit the RM6 billion mark.
"These figures are distressing, especially with some of the 430,000 defaulters having graduated more than a decade ago.
"The government could mandate that employers implement automatic salary deductions for PTPTN repayments. Alternatively, the employer portion of the EPF contribution could be diverted towards PTPTN instalments instead of the worker’s EPF account.
"These would ensure that loan repayments are made consistently, reducing the burden on both the borrowers and PTPTN," said Mah, who is also the MCA deputy president.
For self-employed individuals or sole proprietors, he said the government should introduce a policy that prohibits the renewal of business licences for these PTPTN borrowers who have outstanding loans.
He said this would incentivise repayment and ensure accountability among self-employed borrowers.
"The authorities, be it PTPTN, the Inland Revenue Board (LHDN), Insolvency Department and the Immigration Department need to be more thorough in placing all defaulters on a blacklist, preventing them from leaving the country until their outstanding loans are settled.
"Additionally, PTPTN defaulters should be prohibited from applying for new loans, credit facilities, especially personal credit cards, or purchasing properties, shares and vehicles.
"These would encourage borrowers to engage with PTPTN regarding their repayment options," he said.
Mah also said that arrangements should be made to pay in instalments if paying the lump sum along with the accrued interest becomes burdensome.
He said it is our moral obligation to ensure that the next generation has access to education and is equipped with prudent money management skills.
"Considering that the RM6 billion is equivalent to 20,000 Rumah WIP and that many fresh graduates, young adults and even from the middle-aged group yearn for affordable home ownership, it is incumbent upon the defaulters to pay up.
"This would provide them with much-needed housing options while simultaneously reinforcing the importance of responsible financial management.
The irresponsible behaviour of these defaulters not only jeopardises the financial health of PTPTN but also undermines future generations from accessibility to tertiary education," he added. - September 24, 2024
.JPG.JPG)
