Unwise to use personal loan to settle PTPTN: Financial Consultant

KUALA LUMPUR: The trend of taking a personal loan to settle National Higher Education Fund Corporation (PTPTN) debt has been described as an unwise decision.

Financial consultant Shamsuddin Kadir said some PTPTN borrowers did not understand the concept of interest offered by banks and other credit facilities apart from being influenced by their peers who were trapped by using personal loans to clear their PTPTN borrowings.

“Debts through personal loans will only make us poorer. Even though PTPTN repayment may take some time, we have to remember the low cost of PTPTN interest,” he told Bernama after appearing as a guest in Bernama News Channel's Ruang Bicara programme here last night.

Shamsuddin said it was important for PTPTN instalments to be paid on time while parents should ensure their children pay their PTPTN loans.

“We often hear parents asking their children when are they going to buy a car, house but did not raise the matter on repaying PTPTN loans. When we take PTPTN funds and decline to pay back, other students would be deprived of the facility. This should be avoided,” he said.

“Parent should be sensitive and monitor their children's financial status, whether their children received personal loan or credit card letters to avoid getting trapped in serious financial difficulties,” he said.

He said among the facilities which should be avoided in financial management are personal loans, credit cards as well as easy payment schemes.

“Give the right priority according to needs and avoid huge expenditure and invest wisely in properties,” he said. — Bernama