Kuala lumpur: The Central Leadership of the Women's Wing of Parti Keadilan Rakyat (PKR) has called on the government to reform the National Higher Education Fund Corporation (PTPTN) repayment system by scrapping the 15 percent debt collection agency fee and permitting borrowers to negotiate loan restructuring directly with PTPTN.

According to BERNAMA News Agency, Karen Kasturi, an executive committee member of PKR Wanita, emphasized that these reforms should be implemented immediately to alleviate the financial burden on existing borrowers. This comes as the government considers the potential abolition or restructuring of PTPTN to ensure Malaysia's higher education financing system remains sustainable and fair.

Kasturi highlighted the urgent need to address the challenges faced by thousands of borrowers struggling with their repayment obligations. She pointed out that many have had their accounts referred to debt collection agencies, which often require a lump-sum payment of up to 50 percent of the outstanding balance, alongside a 15 percent agency fee. This fee, she argued, places unnecessary financial strain on borrowers who are already struggling to repay their loans.

Furthermore, Kasturi noted the confusion surrounding the loan restructuring process, where borrowers seeking to restructure their repayments are often redirected to debt collection agencies without clear guidance. She urged the government to allow borrowers to negotiate and restructure their repayments directly with PTPTN, bypassing the need for third-party agencies.

Kasturi also called on the government to review PTPTN's repayment mechanism by introducing more flexible restructuring options and targeted assistance for borrowers from the B40 and M40 income groups. She stressed the importance of ensuring that any Employees Provident Fund (EPF) savings used for PTPTN repayments are not significantly reduced by intermediary charges, including those from debt collection agencies.

She concluded by urging the government to view PTPTN borrowers not just as debtors but as individuals striving to regain their financial stability after pursuing higher education. She emphasized that meaningful PTPTN reform must begin by addressing the concerns of existing borrowers and rectifying the weaknesses in the current repayment system.

Prime Minister Datuk Seri Anwar Ibrahim recently informed the Dewan Rakyat during Prime Minister's Question Time that the government would deliberate on the possible abolition of PTPTN, following discussions during the Johor state election campaign. He stated that he would engage with Higher Education Minister Datuk Seri Dr. Zambry Abd Kadir on the matter.