How to abolish student loans

Pakatan Harapan's convention season saw a proposal by PKR Youth chief Kamil Munim to write off PTPTN debts for those in need. This could lead to abolishing student loans altogether. The plan involves three steps. First, stop issuing new debt and replace PTPTN loans with fixed grants. These grants could be vouchers for students to choose their preferred programs at any university.

Public or private universities that offer premium programs could add to the voucher price, while others could provide basic programs at the voucher fee. Second, offer options to clear PTPTN loans for those who have outstanding balances. They could make regular, mandatory salary deductions, or clear their accounts. Third, finance the PTPTN grants.

The government already spends less than one percent of its operational expenditure on PTPTN disbursements, and there are additional subsidies. This could happen as early as Budget 2027. PTPTN could administer the new system, continuing its Simpan SSPN (National Education Saving Scheme). With RM24 billion in deposits from millions of accounts, PTPTN could become a national higher education trust fund, funding the higher education ecosystem in line with its original mandate.