Jun 20 2008
Less MIED loans due to defaulters
Generally, most education funds have problem collecting back the loans. For example, PSD, MARA, PTPTN, and also MIED. MARA and PTPTN are improving after focusing on legal action and improving their system.
MIED said that number of applications is increasing (obviously!) but due to financial constraintst caused by loan defaulters, less applications will be approved.
According to Samy Vellu, non-performing loans (NPL) had been reduced to 17%. Previously, it only 34% actually made repayment! Probably the plan by MIED to bring defaulters to court prompted some of them to pay back.
For this session, MIED handed out RM1.5 million to 185 students. 90 of those students are pursuing medicine. In March this year, MIED gave RM2.7 million to 289 students.
More details from NST:
Besides legal action against defaulters, Samy Vellu said the loan programme had been restructured by allocating funds on a yearly basis and not for the duration of the course.
For instance, if a student pursued a three-year course, MIED would allocate funds for the first year only.
Money for the remaining two years would depend on the student’s academic performance and additional funds provided by the student’s family.
He said this after presenting MIED loans to 185 applicants, amounting to RM1.5 million at the MIC headquarters yesterday. Of the 185, 90 will pursue medicine.He said since the loan programme was established in the 1980s, about RM90 million had been disbursed to 8,500 students to pursue tertiary education.
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MIED’s study loan interest rate is very high. MIED should reduce 6% interest rate to help more Indian students.
[Reply]
Cindy
Perhaps you are right. But you know why the rate is high ? The high rate of default is contributing to it.
I heard that these people include rich doctors and lawyers, including prominent supporters of DAP and PKR.
These people are traitors of the community.
[Reply]