Syahredzan said PTPTN's new repayment scheme is unfair to those who are already paying and will now suddenly see their payments skyrocket. ― Picture by Mukhriz Hazim

KUALA LUMPUR, Dec 6 — The National Higher Education Fund Corporation’s (PTPTN) wage garnishment scheme penalises those already paying back their student loans regularly, said Syahredzan Johan.

The civil liberties lawyer also said the sudden decision on the scheme commencing next month was also made unilaterally without discussions with those involved, which now includes employers.

“The PTPTN repayment issue, it is unfair to borrowers who are already paying back monthly and will suddenly have their payment skyrocket,” he said on Twitter.

“PTPTN must state if the wage garnishment is applied to all or only those with new loans or those who have never paid back at all.”

PTPTN chairman Wan Saiful Wan Jan announced yesterday that the agency will garnish the wages of borrowers earning above RM2,000 monthly at tiered rates ranging from 2 per cent to 15 per cent.

Malaysian Trades Union Congress president Abdul Halim Mansor questioned the legality of the scheme, saying the law only permitted mandatory wage cuts for selected statutory bodies such as the Inland Revenue Department, the Employees Provident Fund and the Social Security Organisation.

Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan said the proposal was complicated and burdensome on private firms, saying it was unlike income tax and EPF deductions that were applicable to all employees.