KUALA LUMPUR – An academic has suggested a different approach to the disbursement of National Higher Education Fund Corporation (PTPTN) loans, recommending that students in urban universities receive more compared to those in rural institutions due to the higher cost of living.
Speaking to Scoop, Faridah Mydin Kutty of Universiti Kebangsaan Malaysia’s Educational Policy and Leadership Research Centre, noted that these measures are essential as many poor households struggle to save sufficient funds to cover university fees and other expenses when their children gain admission.
However, Faridah who specialises in university students’ development, adult learning and educational psychology – commended the government’s efforts to encourage youth enrolment in higher education.
These initiatives, which were introduced in Budget 2025, include incentivising parents to save for their children’s education, she noted.
Regardless, she urged the government to do more by adjusting PTPTN loan amounts based on the location of students’ universities.
She said that students studying in urban universities like Universiti Malaya might incur a higher cost of living than those studying in rural-based universities like Universiti Utara Malaysia, and therefore might require more loans.
“But first, the government needs to undertake systematic research on the cost of living of students based on the location of their universities,” she said.
Faridah also suggested that additional financial support could come in the form of subsidised fees, food, accommodation, and learning devices for students from low-income families.
“Moreover, the government should consider a separate education loan scheme or a special fund specifically for B40 students,” she added.
She supported Putrajaya’s decision to withdraw higher education subsidies for students from the T15 income group, as outlined in Budget 2025, saying that the savings from this could be redirected to benefit B40 students on campus.
The budget, announced by Prime Minister Datuk Seri Anwar Ibrahim, also extended personal tax relief for net savings in the National Education Savings Scheme (SSPN) for another three years.
Additionally, Permodalan Nasional Berhad (PNB) will introduce the Celik Madani Programme, providing RM50 free to 100,000 students who open new Amanah Saham Nasional Berhad (ASB) accounts.
Furthermore, the government will expand the eligibility criteria for the Geran Padanan Ihsan (GAPAI) matching grant, increasing the income threshold for families from RM4,000 to RM6,000 and raising the grant amount to RM5,000 for students saving in Simpan SSPN accounts, applicable for the next two years. – October 25, 2024