KUALA LUMPUR: Former National Higher Education Fund Corporation chairman Datuk Wan Saiful Wan Jan has urged the government to revisit proposals made in 2020 that could offer relief to borrowers, particularly those earning below RM4,000 a month.
In an interview with theSun, the Tasek Gelugor MP said despite a comprehensive presentation made to the Cabinet just a week before the resignation of former prime minister Tun Dr Mahathir Mohamad, the plan has yet to be implemented or even revisited by the current administration.
“I presented a mechanism (in which) those earning under RM4,000 monthly would be exempted from repayments. We found a way after years of study and the Cabinet, in principle, did not object. But Tun resigned the following week and the plan was shelved.”
He lamented that the proposal has not been revived, despite its relevance and feasibility, adding that only minor adjustments are needed to align the plan with the present economic climate.
He also said the core of the issue surrounding the corporation is its unsustainable financial structure.
“The challenge is not about who is paying. It is the business model itself.
“The corporation borrows money from the market at a higher interest rate and lends it to students at a lower rate. The gap between the two is what causes financial strain year after year.”
He said the corporation’s current liabilities could be in the range of RM50 billion to RM60 billion, adding that the situation poses a challenge for the nation.
“When I was chairman, I raised this issue. I said the model must be reformed.
“But Covid-19 happened and all attention shifted to public welfare.”
He added that reforms are necessary not just for the benefit of borrowers, but to ensure long-term viability.
“This is not just about helping low-income (students). If we do not fix the model, the corporation will keep accumulating debt.”
On another matter, Wan Saiful welcomed the idea of state governments helping citizens pay their student loans.
“There is nothing stopping any party from helping. Sarawak is already doing it.
“Any state could assist their citizens if they have surplus revenue.”
