Student loan agreement allows wage garnishment, says PTPTN chairman

Jerry Choong
National Higher Education Fund Corporation (PTPTN) chairman Wan Saiful Wan Jan speaks at a press conference in Kuala Lumpur July 16, 2018. — Picture by Firdaus Latif

KUALA LUMPUR, Dec 6 — Borrowers who sign the National Higher Education Fund Corporation (PTPTN) student loan agreement also permit the corporation to use whatever scheme necessary for repayment, said its chairman Wan Saiful Wan Jan.

He said despite claims from some quarters that the corporation cannot instruct employers to make salary deductions from their workers as repayment, Section 29 of the PTPTN Act 1997 empowers it to do so.

“I have heard the views and suggestions that followed the announcement yesterday, and taken note of their annoyances. I am always ready to consider any appeals for those who require special consideration,” Wan Saiful said in a statement.

He added that PTPTN is constantly aware of the rakyat’s needs, and that the new policy is to ensure PTPTN will be able to assist coming generations.

Wan Saiful said the government had a choice as to whether it would prioritise the borrowers of today, versus the corporation’s sustainability so that millions of children will have the funds to enter tertiary education institutions in the future.

“This was not an easy decision as it involves two groups with differing priorities. Nonetheless, I am confident the government’s decision will ensure PTPTN’s sustainability for our children’s benefit,” he said.

Wan Saiful’s statement comes in the wake of comments by several quarters, including Malaysian Trades Union Congress president Abdul Halim Mansor, who claimed yesterday that the corporation has no authority to force employers and workers to make repayments via salary deductions.

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