IMAGINE this: a fresh graduate with a degree, dreams of making a difference, and a RM30,000 PTPTN loan hanging over their head. They apply for job after job, only to find that their field pays peanuts. Now, PTPTN wants to punish future students in similar courses by cutting off funding. Is this fair?
The National Higher Education Fund Corporation (PTPTN) is considering withholding funding for university courses with loan repayment rates below 30%. On paper, this sounds like a bold step to foster a repayment culture. In reality, it feels more like a knee-jerk reaction that targets students instead of addressing issues like low graduate wages and a job market that’s failing young Malaysians.
We need to ask: Why aren’t graduates paying back their loans? The simple answer is they’re unable to. The job market is flooded, wages are stagnant, and underemployment is rampant. Many graduates are working in jobs unrelated to their degrees, earning just enough to survive. When rent, bills, and groceries are already a struggle, where’s the money for PTPTN repayments supposed to come from?
Instead of asking why students can’t repay their loans, the Government should be asking why out education system isn’t translating into better-paying jobs. Penalizing students for choosing courses with lower market demand—often in fields like the arts or social sciences—doesn’t fix this. It just creates a cycle where fewer people pursue these fields, further devaluing them, and society loses out on critical thinkers, creatives, and educators.
PTPTN’s suggestion that universities should help boost loan repayment rates raises another question: how much can universities really do? They can’t make companies pay graduates more. And it's not the university's job to create jobs.
Instead of playing the blame game, PTPTN should work with universities. Provide incentives for courses that include internships or offer skills highly valued by employers. Fund programs that help students transition into the workforce. Don’t punish universities—or their students—for systemic issues beyond their control.
What happens if PTPTN cuts funding for certain courses? It doesn’t just affect students in those programs—it limits opportunities for future students from low-income families. PTPTN loans are often the only way these students can afford higher education. If funding dries up, so do their dreams.
This could hit disadvantaged groups the hardest, especially those already underrepresented in high-paying fields. Instead of fostering equal opportunities, PTPTN’s proposal risks widening the gap between the haves and the have-nots.
At its core, PTPTN was established to give every Malaysian the chance to pursue higher education, regardless of their background. By focusing on punishment instead of solutions, this proposal risks betraying that mission.
Malaysia’s young people are already struggling in an unforgiving economy. They don’t need another hurdle. PTPTN must rethink this approach before it shuts the door on the next generation’s potential.
Let’s fix the system—not penalize the students.
Abdul Rahim Md Noor is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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