Kota Kinabalu: Parti Solidariti Tanah Airku (Star) Tanjung Aru Division Chief Hiew Choon Yu called on the State Government to create a special fund to support students unable to secure education loans due to past repayment issues, ensuring educational opportunities for all.
“All repayment procedures must be relatively strict to prevent the recurrence of loan default situations,” he said in a statement, here, Tuesday.
AdvertisementHe noted that over 2.7 million unpaid higher education loans, amounting to a total of RM32 billion, have led to reports that the National Higher Education Fund Corporation (PTPTN) is considering halting loans for university programs with repayment rates below 50 per cent.
“This means the future students might be affected by their seniors failing to repay their education loans, resulting in the ineligibility of their chosen programs for loan approval and, consequently, the loss of opportunities for further studies,” he said.
SPONSORED CONTENT Shell Sabah Deepwater Production Manager Earns Unsung Hero Award Daily Express had the opportunity to interview Musti whose story reflects the power of determination and resilience. Read more He said that higher education loans not only alleviate the burden of tuition fees and living expenses but also allow students to focus on their studies with peace of mind.
“Many youngsters failed to recognise the repayment pressures when securing higher education loans due to a lack of financial awareness.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});“After graduation, they struggle to balance their income and expenses, ultimately being unable to repay the loans,” he said.
Hiew pointed out that, compared to other formal financial institutions, the repayment system of the PTPTN is relatively lenient.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});“Regardless of the amount, even occasional minimal repayment does not significantly impact employment or credit standing.
“This leniency has led many to adopt a complacent attitude, avoiding their repayment responsibilities,” he said, adding that kindness is taken for granted.
“The original intention of the PTPTN was to help students from financially struggling families to pursue higher education without worries.
“However, the irresponsible attitude of some borrowers who believe it is okay not to repay has shifted the burden onto future generations,” he said.
He said fortunately under the leadership of the Chief Minister Datuk Seri Hajiji Noor, the Gabungan Rakyat Sabah – Pakatan Harapan Plus Government placed education support and human resource development as its top priority.
“The Sabah Government has gradually rolled out various welfare programmes to ensure that the younger generation receives a solid fundamental education, also acquires the knowledge and skills necessary to face global challenges.
“This includes one-time cash aid for Higher Education Registration, Computer Handout, Special Exam Aid, State Education Aid, Sabah Education Excellence Awards, Parent- Teacher Association activity aid, Sabah School Aid and Special Education Aid,” he said.
