PTPTN: Let’s have “friendly chat” and “open their hearts” …
Tuesday, February 22nd, 2005 | 12:48 am @ SK
Prime Minister Abdullah Ahmad Badawi already instructed the National Higher Education Fund Corporation (PTPTN) to initiate effort to make sure loan defaulters pay up the outstanding arrears up to RM7 billion. Quote:
"Whatever the reasons of the loan defaulters, the corporation must identify them and try to recover the loans so that the funds does not disappear just like that.""However, if the borrowers really cannot afford to pay back, the matter can be negotiated with the corporation to find the best solution."
"Perhaps , some of the students who took the study loans have yet to get a job, and needed time…wait for them to get a job…give them some time, that I understand."
Meanwhile, High Education Minister Shafie Salleh in his response, was quoted as saying:
"PTPTN will hold pep talk with students on repayment of their study loans and publish names of stubborn defaulters.""The friendly chat was to open their hearts to service the loans they took from the corporation to finance their studies."
Honestly, when I read until the "friendly chat" phrase, I smiled. Next, even worse - open their hearts and what else, I just laugh straight-away.
I don’t know, maybe I’m over-reacting or over-sensitive, or maybe PTPTN had exhausted any possible ideas.
Don’t get me wrong, I truly appreciate the minister effort in trying to come out with this compromising approach while continuing to seek the best resolution, for the sake of poor students.
But, really, let’s get back to the reality, will this work?
February 22nd, 2005 at 8:32 am
Please the only reason people skip payment is that they do it intentionaly and in fact squandering the resources of future students. If they really want to recover the loans, hit hard and hit fast. Find out their current organisation and tell them their employee is untrustworthy by being a loan defaulter and pursue legal actions if needed. No soft approach will work.
February 22nd, 2005 at 10:41 am
Last year, PTPTN has announced (well, at least to MMU undergraduates) that, 1st class Degree holders can convert their loan to scholarship, without career bond. However, as far as I’m concerned, those 1st class holders graduated in 2004, have yet to receive any further confirmation or approval from PTPTN, though application was made.
February 22nd, 2005 at 1:39 pm
I am worth RM -52,000. I am one of the many that have such loan debts on my head. I am the passive kind that prefers to wait for the letter for PTPTN telling me it’s payback time (Well, for loans, who doesn’t?) I do not intend to escape. I do intend to payback, but for now I rather sit back and wait (My preference of my own financial management) for the instructions from PTPTN. So far, there are none. If I were to voluntarily payback, I will call (I have called, actually) their office for enquiries. Guess what, no one picks up my call. I even doubt ever being pointed to the right department if I were to go to their office.
PTPTN is broke because of it’s own doings, not the students or grads. If swift and stern actions were taken (Think banks!), the “drag culture” (which I’m part of, right now) wouldn’t have happened in the first place. Nor them being broke.
Another thought: No sour grapes here, I’m no first classer, but I was just wondering about the 1st class waiver policy that Tien Soon brought up.
What are the ratio of 1st class grads vs the entire faculty batch? A teacher-friend-mentor of mine once looked through my MMU yearbook and was shocked (Seriously shocked, in fact) of the number of person that have clinched first class. She, being a UK grad in English literature, mentioned that in her faculty batch of about 600 - 700 people, only 60 - 80 students obtained a first class. With that many number of first class students (Whether they are up to par or not, that I don’t know, you figure it out), don’t you think PTPTN will suffer, in the end too? (Note that the same scenario occurs in public universities as well)
February 22nd, 2005 at 11:00 pm
‘PTPTN is broke because of it’s own doings, not the students or grads.’
blaming others when you’re in the wrong. the government’s loaning you money so that you can have proper education, to help you ease your family’s burden, and this is how you repay them?
you can say that you intend to pay them back, but how many thousands out there are saying the same thing out there? excuses, excuses, it’s all talk and no action. i’m so sick of this kind of mentality in our society.
February 23rd, 2005 at 1:17 am
livingmonolith, I suppose you are one of the defaulters?
No action, talk only? I called, no one answers my call. I even wrote in, no one responded accordingly. So? My contract specifies that I have 3 years until I am obliged to pay (Whether I’m with or without a job), being a rookie, I am still struggling with my current financial status. So what is the difference if I would REPAY them NOW and leave my family in debt? Let it be what you want to judge about me, I still have 2 1/2 years until they can sue me (They leave the terms, not me, so am I wrong to exercise my contractual rights?).
I still insist that PTPTN is screwed because of it’s own doings:
1. How often do you see a bank or a financial institution go kaput because it’s loan defaulters doesn’t pay back? How often do you see loan defaulters (or their assets) got away from the officials and the papers?
A financial instituition should be very conscious about their cash flow and debt management. There would be well laid procedures to recover a specifc “loss” from loans in a particular timeframe. At this point, I don’t see any coming from PTPTN. For example: Why do they need 4 years to process and return our agreements? Is this a healthy procedure? Some of my friends haven’t even got their agreements, so, are they liable for something that is not their own doings?
2. When you car is rattling and making funny noises at 20km/h, would you continue to drive and let it run up to 100km/h and risk your own life?
RM7 billon is not a small number. PTPTN should exist already for more than 5 years, a few of my ex-tutors are also loan defaulters but are not issued any form of notice even up to now. Imagine, people 5 or 6 years ahead of us are not even taken care of, and imagine the cumulated amount “snowballed” up to now. Gee, I wonder how such elephant can sneak past the ant-sized CFO-equivalent executive’s nose.
3. Feeding 10000 hungry monks with a bowl of porridge. Tell me if you can do that, I will gladly call you “teacher”.
Initially, the PTPTN loan interest rate was 4% and students are required to pay latest 6 months from their graduation date, and only public university students and selected private universiy students are entitled to apply. This policy was ammended to a 3% interest rate, and payment is only required latest 2 years after the graduation date, and PTPTN opens its doors to quite a large number of academic instituitions later. Tien Soon also mentioned about the 1st class waiver policy (Get a 1st class degree, you will get RM64K free). Apparently, someone in the management needs a class in forecasting and resource planning. How can you expect a reasonable minimal debt turnaround time with such constraints? I’m not saying that PTPTN is wrong in opening it’s doors, but at least do it in an acceptable manner to the organization.
Same here, I’m also as sick as you with our society’s mentality that doesn’t think and blames just like that.
February 23rd, 2005 at 3:51 pm
you do not have to explain yourself if you think you are right.
i do agree with you that there are plenty of flaws in the system, but that does not give us the right to exploit it.
February 23rd, 2005 at 6:29 pm
There won’t be a need for court if one think they don’t need to explain when they are right.
I’m not exploiting it, my contract is not even due yet.
Anyhow, I won’t side on PTPTN on this one. Do not screw us because of your bureaucratic issues. In SK’s recent post, he mentioned that the authorities can only get 200 defaulters to the court in April (2 months later). 200, so what’s 200 compared to 20,000,000 defaulters to be in court? Is this a truly good way to get people to pay? I still believe the problem goes back to the roots. They allow the “drag” culture to breed, and hence, they suffer in the end.
But then again, which government agency’s policy doesn’t not react like a vacumn cleaner?