National Higher Education Fund (PTPTN)

 National Higher Education Fund (PTPTN)


  As an education activist who has been running many pro-education programmes which benefit students from poor families through Bandar Tun Razak Education Foundation, I am truly sad to hear that the National Higher Education Fund (PTPTN) is to reduce its lending to students of public and private institutions of higher learning.
 
  This measure surely adds a burden on the students and their families. I oppose to the PTPTN lending reduction for the following reasons:

  1)   Rising cost of living when subsidy rationalisation programme is implemented such as on fuel. As a result of it, the 2014 inflation is rising to 3.5%. The impact on the people is real especially to the lower and middle income groups.

  2)   The implementation of Goods and Services Tax (GST) starting 1 April, 2015 will set to drive inflation rate up to 4%-4.5%. The burden of rising cost of living is acerbated with the reduced purchasing power. As a matter of fact, the inflation rates of 2014 and 2015 will be in excess of 8% in total which will be hitting hard on life of the people, in particular of the university fresh entrants.

  3)   The policy of punish all for the acts of one is unfair. Those who are not at fault should not be punished. Otherwise, it sets a bad example for the future generations.

  4)   Most PTPTN borrowers come from lower and middle income families. As such, PTPTN should continue to help them, not punishing them.

  5)   PTPTN loan reduction runs counter to the knowledge-based economic policy which is the basis to becoming a developed country. We should produce more knowledge workers through higher education to increase competitiveness, intellectual property creation and towards a knowledge society.

  6)   PTPTN should get more allocation from the Finance Ministry if they are short of fund. Besides, PTPTN could also get funding from EPF or Petronas so that the education fund can operate without problem. We should provide our children the highest education possible as they are the hope of us and the country.

  In addition, PTPTN could also introduce PTPTN Deposit Account Opening Drive to enable parents save for their children. Deposit of up to RM2,000 be income tax exempted. This way, it not only adds capacity to the PTPTN fund but also giving more students the opportunity for higher education and thus producing more knowledge workers.

  As such, I urge PTPTN to be more proactive; instead of cutting its lending, PTPTN should take into account inflation and increase its lending amount.

  I would also like to urge PTPTN to always remember that e can be poor materially but not in education?as education is the pulse of the nation. As such, PTPTN should take the correct step of not cutting its education lending for the sake of the people and the nation.