The government's decision to provide a discount to students who pay their National Higher Education Fund Corporation (PTPTN) loans in full early under Budget 2013 will only benefit the rich.

This is because only the rich can afford to fork out a large sum of money to immediately clear their PTPTN debts, Khalid Samad (PAS-Shah Alam) said during the budget debate this afternoon.

NONE "What we want is to give PTPTN discounts based on merit. For example, to people who get good results or are poor, not to people who have a lot of money to pay them off immediately," Khalid said.

He said this when interjecting Hamim Samuri (BN-Ledang) to concur with Hamim's proposal to provide discounts and scholarships to students who graduate with good scores.

Prime Minister Najib Abdul Razak when tabling the budget in Parliament last Friday announced that students who pay their PTPTN loan in full between Oct 1, 2012, and Sept 30, 2013, would be given a 20 percent discount.

On top of this, students who repay their PTPTN loan according to schedule will receive a 10 percent discount a year.

Hamim proposed that students who achieve an upper second class in their degrees have their loans converted to scholarships.

A 50 percent discount?

"Alternatively, they can perhaps be given a 50 percent discount if they score more than 3.5 in their cumulative grade point average (CGPA)," he said.

However, he chastised the opposition for suggesting that students need not repay their PTPTN loans.

Pakatan has promised that if it captures federal power, it will move to provide free education and waiver all PTPTN loans.

In light of this, Opposition Leader Anwar Ibrahim called on students not to repay their loans, much to the ire of the government and the BN parliamentarians.

Related stories

Speaker defends time cap on Anwar's debate speech

It's a budget for the BN cronies

Najib disrespects legislature, says PKR veep Surendran

PM can dish out but can't take it

'BN insincere about GST implementation'

Sites found, but decision pending on nuke plants

'Gov't money for NGOs will stem foreign influence'

Smartphone rebate only via 'selected dealers'

Tan: Sugar subsidy reduced for people's own good

Budget 2013 - tussle of the titans

Budget debate no-show: Najib's all bark, no bite