Subscribe in a reader | Subscribe by Email RM86 million / 8000 students = RM10750/student. 1984 until 2007 is 24 years. Rm86 million/24 years = RM3.583 million per year. Anyway, averages may not be painting the true picture, since if a medicine course costs 300K and a 1-year certificate course costs 5K, the higher-costing course will skew the results.
More importantly, this reflects badly on the community. MARA also faces similar problems. Perhaps MIED can advertise in newspapers just like MARA.
MIC tightens study loans after getting only 34% repayments
By : Adrian David
source
KUALA LUMPUR, Wed:
The MIC is tightening procedures in awarding study loans as only 34 per cent of the RM86 million disbursed has been repaid.
The loans were provided through the MIC’s educational flagship, the Maju Institute of Educational Development (MIED), to more than 8,000 students since 1984.
MIED director Prof Datuk Dr T. Marimuthu said owing to this, legal action had been instituted against 2,000 defaulters, of which judgment had been obtained against 200 of them. He said the defaulters either could not be traced owing to a change of address or could not afford to repay the loans upon completion of their studies. Marimuthu said the defaulters and their guarantors were also blacklisted, preventing them from obtaining loans from other sources.
“Since October, we have restructued the loan programme to allocate funds on a yearly basis rather than for the whole duration of the course. For instance, if a student pursues a three-year course, the MIED will allocate the study loan for the first year only. Loans for the the remaining years will be based on the student’s academic performance and added with funds provided by his parents or guardians.
“Another measure is to stop loans for students provided with RM40,000 or more,” he said at the presentation of RM2.7 million study loans for 289 students at the MIC headquarters in Jalan Rahmat, yesterday.
Marimuthu urged students to promptly repay their loans so as not to deprive other deserving cases. “The non-repayment of loans has put a financial strain on the MIED which has difficulty generating funds from banks,” he added.
MIED won’t approve loans above RM40,000
KUALA LUMPUR: The MIC-owned Maju Institute of Educational Development (MIED) will no longer approve loans of RM40,000 and above to students to pursue higher education.
Its director Datuk Dr T. Marimuthu said this condition was imposed as many of the borrowers had difficulty in repaying their loans after they started working.
“We found that whatever they earned was enough for them only,” he said after presenting study loans to 289 students totalling RM2.7mil yesterday.
Dr Marimuthu said 59% of the recipients were pursuing medicine in local and foreign universities.
“MIED has disbursed RM89mil in loans to help more than 8,000 students further their education. It has become the leading provider of study loans to Malaysian Indians.”
MIED chief executive officer Chitrakala Vasu said students had repaid RM23mil of the RM89mil disbursed. She said more students who had taken loans had come forward to repay them while legal action was being taken against some 1,800 borrowers.
