‘I had three jobs in college. The best day of my life was when I paid off my student loans, on my own.’ — Jessica Seinfeld, American author
Imagine yourself as a successful and generous person who, years ago, established an educational foundation with one mission — to help needy students attain a tertiary education.
Your plan included a loan scheme for students to assist them with their financial woes so that they could concentrate on their studies and not worry about money matters.
The loan, without interest, must be repaid to the foundation after they have completed their studies and gainfully employed.
Over the years, your foundation has been struggling to collect debts from students, and even from those who have made it in life.
Recently, there was a report that 30 per cent of the debtors could afford to go on holidays abroad but never took the trouble to settle their student loans.
How would you feel?
Surely, you would feel deeply disappointed and frustrated. It is disheartening to see that while many borrowers genuinely struggle to repay their student loans, a significant number who are financially capable choose to ignore their responsibility.
This is exactly the student debt situation today in the National Higher Education Fund Corporation (PTPTN).
According to PTPTN chairman Datuk Seri Norliza Abdul Rahim, about 30 per cent of the 1.2 million loan defaulters were found to be able to afford holidays abroad.
“I believe firm action should be taken against this group, as they clearly have the means to repay their loans but have failed to do so,” she said in an interview with Mingguan Malaysia last Sunday.
Norliza said that as of Aug 31, PTPTN loan repayment arrears amounted to RM11.18 billion, involving 1.2 million defaulters.
This, she said, included RM5.25 billion owed by 359,000 borrowers who have never made any repayments.
That is a huge amount, by any standard. One wonders how such a massive debt could be accrued without any remedial step taken over such a long period.
Let me say this as it should be said. We have to stop pampering our student debtors. It’s time to get tough. They must be made to understand that the PTPTN loan is not a luxury; it is a public trust meant to help young Malaysians pursue higher education.
When those who can afford to repay refuse to do so, it undermines the system, deprives future students of the same opportunity and reflects a troubling lack of integrity and gratitude.
What is more depressing is to hear from Norliza that among the defaulters are individuals who have been employed for many years, some even up to the age of 60, yet still fail to settle their debts.
Imagine this: You would have obtained the PTPTN loan at 18. Now you are 60. That is forty-two years later. So, for more than four decades, you make no effort to settle the loan. What does that say of you?
It speaks volumes about a person’s sense of responsibility and integrity, or rather, the lack of it. To carry a debt for over forty years without making any effort to repay shows not only indifference but also a disregard for moral and civic duty.
It suggests a mindset that takes public funds for granted and fails to appreciate that such loans exist to help others, not to be exploited.
I suppose we can reason that after forty-two years, this is no longer an issue of financial hardship but one of character, accountability and respect for the system that once gave you a chance to succeed.
Enough is enough! I’m glad to know that Norliza and her PTPTN board are now taking action, one of which is to consider reinstating travel bans or blacklisting.
Historically, when stricter measures like blacklisting or travel bans were in place, PTPTN said repayments improved.
At the same time, I also think it is important to ensure that the target to collect from those who could afford to pay up is met. There has to be transparency too about criteria, like what income level qualifies for “able to pay”, how travel bans will be triggered, how appeals/ hardship claims will be handled.
These are important factors to consider so that while PTPTN is making efforts to recover debts, it is also seen as fair and just to all parties involved. Ensuring that borrowers who genuinely cannot pay are not unfairly penalised is paramount.
My message today is this: Be responsible, settle your PTPTN loans.
If students already show such apathy and irresponsibility in repaying small amounts like RM100 or RM200 a month, it raises serious concerns about the kind of employees or citizens they will become.
A person who neglects a simple obligation, especially one tied to their own education, reveals a troubling lack of discipline, gratitude and integrity.
Responsibility begins with small actions, and failing to honour even modest commitments reflects a deeper flaw in character that no academic qualification can fix.
● Francis Paul Siah is a veteran Sarawak editor and currently heads the Movement for Change, Sarawak (MoCS). He can be reached at sirsiah@gmail.com.
The views expressed here are those of the columnist and do not necessarily represent the views of Sarawak Tribune.
