THE 2017 Budget offered discounts until the end of the year to entice National Higher Education Fund Corporation (PTPTN) borrowers to repay their loans. If one borrows from a commercial financial institution, the loan will come with stringent terms of collateral charged, interest rate determined and pre-calculated repayment period. PTPTN should adopt a more stringent enforcement of loan agreements where borrowers enjoy preferential interest rate and a generous repayment period. It is inappropriate to give the impression to PTPTN borrowers that it is fine to default on their repayments as it is taxpayers’ money. This teaches defaulters that they have a moral and legal duty to return money, which is not theirs, as well as set an example for other borrowers to treat PTPTN loan repayment obligations seriously.

Source: New Strait Times November 04, 2016 03:15 UTC