Guarantors a must for study loans

2007/04/09 Source: NST

ALOR GAJAH: The National Higher Education Fund Corporation (PTPTN) has taken measures to ensure students repay their loans.

Higher Education Minister Datuk Mustapa Mohamed said the steps included tightening loan procedures and sending summonses to those who failed to pay up. "From this month, we require the loans to be backed by guarantors. "There was no need for guarantors in the past but from now onwards, parents can be the guarantors," he said to reporters after launching the Higher Education Ministry Day with the Rakyat at Kampung Bukit Bulat, Machap here, yesterday. Mustapa was commenting on a New Sunday Times report yesterday that students who had taken loans from the PTPTN, the Public Service Department and Mara owed RM12 billion. Bernama quoted him as saying that from January next year, those who applied for loans must have savings in the national education savings scheme. The minimum savings amount should be RM500 for those with an income of RM2,000 a month. "We find that parents do not prepare for their children’s education. If they have some savings, they will not need to obtain full loans," he said. He said the PTPTN had an annual fund of RM2 billion a year while the number of borrowers was about 150,000 a year. Meanwhile, in Kuala Lumpur, his deputy Datuk Ong Tee Keat said the ministry preferred not to "chase the students with a stick". He said: "We want them to be more proactive in repaying their dues." The money they had borrowed, he said, belonged to the public and they would be depriving other students of a loan by not making prompt repayments. Ong said this after opening the Kampung Pandan community centre.