05 November 2014

Non-payment of loans by older generation hurting future generations

It is a bad time to be a fresh University student in Malaysia today. The National Higher Education Fund Corporation (PTPTN)has announced loan cuts of 5% for students in public institutions of higher learning and 15% for those studying in private institutions of higher learning. This came into effect last weekend.

Apparently the main reason is that many borrowers have not repaid their loans. I know that there is a similar situation in the UK as well. According to PTPN Chairman, Datuk Shamsul Anuar Nasarah, the total PTPTN loan repayment received up to August 31 this year was RM5.37 billion or 45.62% instead of the RM 11.77 billion, the corporation was supposed to receive.

I know a number of fresh graduates either do not have a job or are poorly paid, if they do and they have an excuse. However, I suspect that there are several people earning huge salaries who have not bothered to pay off their debts. I am not sure what are the reason but if you are one of them, please pay off your loans as you are seriously hurting the prospects of future generations.

And for guilty Muslims out there, if you are concerned about the issue of petting dogs, wearing hijab or other current issues, you should be aware that Islam also takes the matter of debt very seriously and Muslims are urged to avoid it as much as possible.

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