A students coalition has urged the government to provide free tertiary education in the wake of the recent debacle over the National Higher Education Fund Corporation (PTPTN).

PTPTN had reportedly accumulated RM7 billion in outstanding arrears over the years, forcing the corporation to borrow RM2 billion from the Employees Provident Fund (EPF) in 2003.

The Solidariti Mahasiswa Malaysia (SMM) told a press conference in Kuala Lumpur today that the government should bear the tuition fees of students in public universities with the study loans only meant for the students' living expenses.

"This would mean that the borrowers are required to pay back only what they had incurred for their living cost during their studies without other charges," SMM spokesperson Mohd Ramadhan Filtri Ellias said when contacted later.

He added that the government should be able to provide free tertiary education should it carry out further study and review educational priorities when distributing allocations.

The coalition was supportive of Prime Minister Abdullah Ahmad Badawi's remark at the Jeddah Economic Forum earlier this week, where he reportedly said that education is the key for development.

"In line with that, we are of the opinion that fully sponsoring students for their tertiary education is a concrete step in realising the goal set by the prime minister," Mohd Ramadhan said, adding that SMM's call for free tertiary education was also endorsed by 29 other campus-based student bodies.

Transparency in administration

SMM also urged PTPTN to be transparent in its administration over the study loans. The coalition said the corporation should reveal details of its allocation and the expenditure especially over the RM2 billion loan from the EPF.

"We don't want to see students becoming victims of PTPTN's inefficiency and weaknesses," Mohd Ramadhan stressed.

On Monday, the prime minister instructed the corporation to initiate efforts to get loan defaulters to pay up the outstanding arrears, which stands at a staggering RM7 billion.

As at Dec 31 last year, the corporation only managed to recollect RM93 million.

"The corporation must do its utmost to recover the loans so that the fund does not disappear just like that," Abdullah said.

The following day, Higher Education Minister Dr Shafie Mohd Salleh warned those who have not settled their loans to PTPTN that they must respond within 14 days upon receiving a notice of reminder or face legal action.

The government has decided to take a group of 200 students who received the previous reminder notices to court in April.