Persatuan Pemangkin Daya Masyarakat chairperson Ann Teo finds very scant information given on the National Higher Education Fund (PTPTN) loan in the State 2020 Budget.
She said, “Firstly, the state will be doing a study on why graduates are finding it so hard to repay their PTPTN loans and secondly, that RM30mil will be set aside for this purpose presumably to help the needy ones repay.
“In fact, just last month, the state government or was it our chief minister himself asked for six months to work out a mechanism to help the students repay their loans.”
She gave her comments on the recent State Budget announced by Chief Minister Datuk Patinggi Abang Johari Tun Openg in the State Legislative Assembly (DUN) Sitting on Monday.
Teo asked, “What is the criteria for eligible borrowers to have their student loans repaid by the state government? Who do they classify as needy?”
She added, “We are not told how many Sarawak graduates or students will benefit from this ‘gift’ of their debts being taken over by the state government.
“Does the offer to repay come with strings attached (for example, transferred debt to Yayasan Sarawak under a deferred repayment scheme) or is it a mere gift to repay what the students owe?
“Will their respective debts be paid in full or will they be assisted to repay instalments just for a season or period?” she questioned.
She then shared her other concern. “The payment of student loan may mean that one’s debts to the government (in this case the federal government) is cancelled.
“If that is the case, will it not encourage future borrowers of PTPTN or Yayasan Sarawak not to repay their loans? Would this offer to repay become a moral hazard in the future?”
She then urged the state government to review well and come up with holistic solutions including increasing graduate employment rates and creation of jobs for them.
“If my tax monies were to be used to finance repayment of student loans (which they should in principle be responsible for) and finding them jobs with decent pay, I would rather the state government spend my tax monies to create these jobs for them.
“Given that Sarawak will be going into a state election due mid-2021, this proposed offer to lighten the burden of repayments for the youths of our state is not a total surprise,” she added.
