Should Government Abolish PTPTN Loans?

Once again, PTPTN (Malaysia National Higher Education Loan) came to the limelight lately with the wrong reasons. In conjunction with this, Finance Malaysia did a survey on Facebook Page asking our fans "Should Government Abolish PTPTN Loans?", and guess the answer given by majority of them? NO.

Emmm... What does this mean? It's pretty clear that majority of us thinks that PTPTN should be continue for the following reasons:

1. There is no FREE lunch in this world
2. Borrowers should repay what he borrows
3. The scheme did already help many financially distressed students pursuing tertiary education

Thanks for your participation in the survey. Yet, many readers keep asking Finance Malaysia, our view on this matter. Before answering you, we also highlighted that this blog is of freedom of speech, we're not political driven blog, and we tend to be political-neutral in writing. Below is our view on this issue:

1. We agreed that there is no free lunch, especially in Malaysia. We should change our mentality that Government owe us this and that things. We must put in our own efforts to make things happen, and Government's role is to facilitate the process to become easier and smoother. This is why PTPTN loan was offered at the beginning.
   
   
2. Regarding the interest rate charged, it's a mere 3% only. Does it really sky high? Definitely not. Why PTPTN charged 3%? This was because our inflation rate is around that figure. If you take last year inflation rate of 3.5% into calculation, PTPTN are making losses actually, although we repay back with 3% interest rate.
   
   
3. Without interest, anyone of us who qualify to go into varsities will take PTPTN loan, whether he/she is serious in his/her study or not. Why not borrow the money to spend, instead of study, if given free?
   
   
4. Without interest, what is the incentive for student to repay back the borrow amount as soon as possible? Without interest, I will be the one who use whatever money I have now to invest, do business, buy gadgets... last is PTPTN. Agree?
   
   
5. We believe this is one of the agenda purposely created by certain political parties to fish young voters, saying that they will abolish and cleared their outstanding PTPTN loan once they formed the new Government. (Please be neutral on this matter, then only think)
   
   
6. By writing-off the outstanding PTPTN loans amounting to billions of ringgit, Malaysia sure will went into financially distressed level. Then, all of the subsidies will be removed, public sector salary will be cut, all of us will protest because of this. Do you really want this to happen?
   
   

Anyway, this is one of the interesting preview running up to the anticipated general election. Finance Malaysia hopes that political parties from both sides should focus on things that really can benefiting the country. What's the point to form a new Government that will go into bankruptcy?

Before ending this posts, we must highlighted here that Government must clear the doubts by sorting it out fast. If not, many borrowers will wait and stop repayment in anticipating that Government will abolish it soon.

Another point was we lauded PTPTN's intention to reward those prompt and disciplined borrowers with a reduced 1% interest rate. However, why not PTPTN automatically reducing it without much hassle for borrowers to appeal? Now, borrowers must request > wait for revised terms and conditions agreement > print and sign > guarantors signatures > employers details > auto-deductions from salary > return back to PTPTN. Since these are eligible good paymasters, why not treati them automatically?

Oh my beloved PSD Graduates, where are You?

When writing this article, I am proud to say that I am a local graduate working locally and repaying my PTPTN loan monthly. Who said that graduates can't perform as best as others? Do we necessary needed to obtain hundreds of thousands of loans to study oversea? If I can survive here, why can't you?

Of course, I can't deny that some professional courses offered here are not competitive enough. That's why many professionals opt for oversea universities. By graduating oversea as a doctor or lawyer or engineer, it definitely costs you a hole in the pocket. Please bare in mind, it is not your pocket, but your parents' pocket. This is when Public Service Department (PSD) scholarship comes into the picture to fulfill Malaysia's dream to groom our talents, and your parents' dream too.

Why don't you come back?

Then, this question popped up. Yesterday, it was reported that 65% of PSD scholars did not return home. Surprised? And, most of them is doctor. Although there are thousands of reasons for them to not returning, I would like to stress one thing only here - responsibility. Yes, whatever you take is whatever you give. PSD gave you so much money, supporting your dream to be a successful Malaysians, realizing your parents' dream, is that the way you return the favors of Malaysia Government?

Practicing what you learn from the 1st day?

Even when we were young studying in Kindergarten, we taught to be a responsible person. And, you're professional now. Do you practiced what you have learn all these years? If you do not like the Malaysia's way, why you took up the PSD scholarship in the first place? Instead, you can take your parents hard earned money. Then, you can disappear yourself, and no one will bother about it.

However, if you took PSD scholarship and do not return back to service, this is considered as "investment loss" of Government. This is public money. Meaning every Malaysian can blame you. Even if you succeed in life, you're spiritually failed. Please be responsible to yourself, your family, and your country. Respond now!

What is the job of a student?

As I am writing this post, I know there must be many other student out there doing their part for the school. What I mean here is, these students are not studying or learning or enjoying their school life. Instead, they are told to "do sales" for their beloved school. Do you know that students are running across the town? Do you know that they are sweating under the sun? Do you know that they are wetting under the rain?

Doing Sales for the school?

Indeed, this is not a new phenomena in Malaysia, at least for the past 20 years. It had been practiced this way since my good old student days. Doing sales here meaning a student is going all out to persuade or convince public to donate money for their school. Is it doing sales? By promoting projects of a school, renovations, new hall, new lab, new school field, students are passionate enough to contribute their energy and time for the benefits of their school. If this is not sales, then what?

But, is this the right thing to do?

Please do not forget, the main objective we enroll into school is to study and learn. Although such actions by students is good in nature, schools should not encourage it. If the student is a volunteer, this is nothing wrong. What if it is not? He might feel that he is not loyal to the school, and feel he is being forced to do so. In the end, this particular student will hate the school and his studies.

Students are studying in library

Whose job is it actually?

Ok. Schools need money, especially private schools. But, who is going to get the funding? Finance Malaysia thinks that everyone of us should, except students. Just let student go to school performing their duties - study and learn. In contrast, headmaster and parents association and public at large should put in their efforts to get the funds needed. I would rather see headmaster going all-out to get donations instead of students in the future. Would this proved that the headmaster is good? Of course.