I REFER to the feedback on PTPTN loans – on how the allocation has to be raised every year to meet demand, how loans are disbursed, the predicament on collection, the meritocracy issue on who should benefit, the failure to pay back, parent’s financial qualifications etc.
I would like to propose that PTPTN be upgraded from a grant giving entity into a full-fledged education bank which will be a one-stop centre to assist needy students.
The paid-up capital can be raised equally by all commercial banks at minimum returns of say 3%. This should be considered a national service funding and the Ministry of Higher Education or those in education will run the bank.
Aside from giving assistance via loans, grants and scholarships, the bank can also play a role in “funding” issues of non-financially strong Private Institutions of Higher Learning (IPTS), having tax exempted/relief education investment/savings products, taking education deposits with tax relief and linking with EPF monies for education funding.
With the commercial bank branches and banking processes, the bank can easily disburse loans and collect repayments through the many branches throughout the country.
It will also be another employment avenue for government services in education, banks and public institutions of higher learning. It will also reduce redundancy and cut through many levels of red tape.