PTPTN Loans for the Needy only

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Putrajaya, Jan 31 - Parents who can afford to pay for their children’s local university education may have to cough up the full sum in the future.

This is because the Government – which is expected to fork out RM5bil annually for the National Higher Education Fund Corporation (PTPTN) by 2013 – wants to ensure that only needy students will obtain financial assistance.

Higher Education Minister Datuk Seri Mohd Khaled Nordin said it was studying the possibility as demand for study loans increased every year, adding that such a move would ensure that PTPTN could offer financial assistance to more students.

“Education in public universities is already subsidised. With the Government having to fork out more and more money for PTPTN annually, I think it is about time that we look at the possibility of parents, who can afford to, paying for their children’s university education.

“We are also looking at offering students partial PTPTN loans, which parents will have to pay part of the fees.

“However, parents who cannot afford to pay for their children’s university tuition fees will continue to receive full PTPTN loans,” he told reporters after launching the REAL Undergraduate Conference here yesterday.

Currently, students offered places at public and private universities are entitled to apply for PTPTN loans, with their parents standing as guarantors.

No limit is placed on the parents’ age or income.

Khaled said for this year, the Government would have to set aside about RM3bil for PTPTN loans while repayment had been “extremely slow and long”.

“We cannot depend on students repaying their study loans to top up the fund because this will take a very long time while the money is needed immediately. That is why we have to look at other options to make it work,” he added.

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