Malaysiakini Letter

Year-end bonus can be used to repay PTPTN loan

V Thomas

LETTER | Various methods are being sought for the repayment of the PTPTN loans. One option to try can be the repayment of the educational loans through the year-end bonus of employees. 

A lot of PTPTN borrowers who have diploma and degree qualifications are in a position to receive a bonus provided by their companies; some receive the usual one or two months' bonus and some more. The bonus could be a large amount based on the earnings and profitability of their firm.

Some employees and employers can agree to this method as the repayment mode for their PTPTN loans. Unlike deductions from their monthly salaries which they would need to pay for their increasing cost of living expenses, the bonus is a larger, additional windfall amount that could be used to repay their outstanding PTPTN loan.

There is also a need on the part of the government to look into the high fees being charged by private tertiary institutions. For what was charged for a degree course a few years ago, now one only gets a diploma education. 

The cost of studying in the private colleges and universities has skyrocketed and the government has to control it and not wash its hands of the problem by just providing the PTPTN loans. The students expect the government to fight for their cause in this matter.

Dependence on the PTPTN loans is mainly due to the high cost of tertiary education and students will have to pay higher amounts and for longer periods. 

The private tertiary institutions are cashing in on the government- guaranteed PTPTN loans and one can observe this from their spacious grounds, monumental buildings and their fanciful architecture. 

If nothing is done about this, both the students and the government will lose out in the long term. The students may not be able to pay their loans instalments regularly and may default. 

The government will then find it more difficult to recoup the loans and replenish the PTPTN fund for other students.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

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