PTPTN borrowers see red over new repayment mechanism

PETALING JAYA: Angry National Higher Education Fund Corporation (PTPTN) borrowers have flooded the fund’s Facebook page with complaints and pleas for reconsideration of the new repayment mechanism, which they say is unfair and a breach of their existing contracts.

This follows PTPTN’s explanation of the new mechanism yesterday, which will see mandatory salary deductions of 2%-15% of borrowers’ salaries for those earning RM2,000 and above.

While the repayment amount for those earning RM2,000 is only RM40 a month, the figure spikes for those earning RM8,000 and above, who will have to fork out 15% or RM1,200 each month.

Many social media users tore into the new deduction rate, which they said meant an increase of several hundred percent in the amount they would have to pay.

“Living in urban areas with high cost of living is hard enough,” said Julia Ong. “Are you discriminating against the M40 and only giving privileges blindly to the B40 at the cost of us middle class? We are suffering in silence.”

Mohd Fahshah meanwhile said he was disappointed with the new mechanism as he had never missed a repayment but would now have to pay 300% more while juggling other commitments like his house and car loan, insurance, and the cost of raising a family.

“Such a deduction is unfair,” he said.

Daniel Ho meanwhile asked if the new terms applied to current PTPTN borrowers.

“If yes, this is outrageous,” he added. “We signed a contract and now PTPTN is going against its own contract.

“From paying RM200 a month to RM1,200 monthly in January 2019. Most PTPTN borrowers are parents with young children now,” he said, adding that it would be difficult to adjust finances in less than a month.

Ng Weng Chin urged Finance Minister Lim Guan Eng to review the new repayment mechanism, saying it would burden those in the M40 group.

FMT has contacted PTPTN for comment and is awaiting a response.

However, FMT has been made to understand that the actual amount borrowers will have to pay will take into account the amount they have already paid.

The fund said yesterday it would inform borrowers of the actual amount they would need to pay, urging them to update their contact information so that PTPTN could do so.

FMT also understands that PTPTN is expected to release a FAQ on the matter later today.