Is it appropriate for banking industry to offer loans to students in the higher learning institutions? Share your opinions.

Recently, there have been serious debates on the prolonged existence of the need for the examination that is currently taken by lower secondary students known as the Penilaian Menengah Rendah (PMR). Such were the interest shown by the Malaysian citizens that once the idea was proposed, there were numerous contentions that it was a blunder to even assume that the proposal would be accepted by the public. The media were previewing the hotly voiced-out opinions by members of the public every single day. Of course, the topic has temporarily died out for the time being but that is not the point. Its the fact that Malaysians by all means show impressive amount of enthusiasm on the subject of education. Our country Malaysia supposedly offers free education (that is, minimal fees for education) to every single student. I quote Bernama report on Nov 1st, 2007 Education Minister Datuk Seri Hishammuddin Tun Hussein said today that he was proud to mention that education in Malaysia is free when he spoke at Unescos 34th general conference in Paris recently. However, whether education in Malaysia truly is free remains to be seen yet be that as it may, that socalled proclaim by the then Education Minister does not include the higher education which is the topic to be discussed currently. As defined by Wikipedia the Free Encyclopedia, higher education, also called tertiary, third stage, or post secondary education, is the non-compulsory educational level that follows the completion of a school providing a secondary education, such as a high

school, secondary school. Tertiary education is normally taken to include undergraduate and postgraduate education, as well as vocational education and training. Colleges and universities are the main institutions that provide tertiary education. Collectively, these are sometimes known as tertiary institutions. Tertiary education generally results in the receipt of certificates, diplomas, or academic degrees. Higher education includes teaching, research and social services activities of universities, and within the realm of teaching, it includes both the undergraduate level (sometimes referred to as tertiary education) and the graduate (or postgraduate) level (sometimes referred to as graduate school). Higher education generally involves work towards a degree-level or foundation degree qualification. In most developed countries a high proportion of the population (up to 50%) now enters higher education at some time in their lives. Higher education is therefore very important to national economies, both as a significant industry in its own right, and as a source of trained and educated personnel for the rest of the economy. Nowadays, higher education has nearly become a must for an individual to settle in a job. However, admittedly those who wish to pursue higher education must also be prepared to face the fact of it being pricey. There are several ways for a pupil who wishes to pursue studies in higher institutions to get himself financially prepared. Of course, the most prominent choice would be to attain a scholarship aid yet that choice is limited for pupils who excelled in their Sijil Pelajaran Malaysia (SPM). So, what about the others who showed lacklustre performance in their SPM? Is there no hope for them to achieve their dreams of obtaining a bachelors degree? Now, this is where we have to resolve that it is appropriate for the banking industry to offer loans to students in the

higher learning institutions. If the banking industry makes the first step in actually offering loans to students who wish to pursue a degree or a diploma or even a certificate, the future of Malaysian students will be a bit brighter than without. It is common knowledge that most students dream about continuing their studies in universities or colleges after secondary education yet not all of them get as a good a result as they would expect in their public examination. Of course, their mischance could be just that, bad luck or maybe they made a technical error in their science paper or something but that is not the point. The point is that should or should it not be that a slight slip from getting straight As mean that all is lost. In this competitive world, everyone seeks perfection. So, naturally it is difficult for such exam candidates to get offers from private organizations or even the Public Service Department (PSD) for a scholarship award. So, what should they do? Such students have the ability to shine in the future. Getting an A less than a peer does not mean that that person can never outshine the supposedly better student. Therefore, the banking industry should seriously consider offering loans to students in the higher learning institutions. Besides that, study loans provided by banks is also appropriate as students pay for themselves that is, parents dont have to burden themselves to pay up their childs university fees which would be exceedingly helpful for those with more than one child or for those with low income. Students study with their own money, that is, money that they would repay later once they start working. This is very important in building the pupils character as well. This way the responsibility lays on the person who studies himself rather than a parent or guardian whereby he settles his own debt once he starts earning. Since, university graduates can get good remuneration if they are qualified to

apply for any particular job, it wouldnt be too hard for him or her to pay back the bank. So, is there a reason for any bank to hesitate? The banks need not make the loan a scholarship no matter how good the student perform in university and with the interest rate the bank may end up getting more money than they give away in the first place. The bank manages to create a good name in the society and maintain it by starting and continuing the loan offers. Hey, a student who attains a study loan from a particular bank might end up applying for a job at that same bank after he finishes his course! Furthermore, students need not pay their loans till after they graduate and find a job. Of course the case will be a little bit different if you are going to get a students loan from a private company. In this case you will probably need to work for the company for a selected period of time. This will bond the student to the respected company right after graduation which is something that should, by all means be avoided if possible. Most companies nowadays try and lure students who achieve excellent results in their examinations to accept their offer of educational loans in return for a contact signed by both sides whereby the brilliant student agrees to serve the company for a period of time after graduation. This might not seem a bad idea. However, have you noticed that most of these companies only offer educational finance to those who wish to major on a course where the students will be useful to the company once they graduate? So what if a student achieves fantastic results and finds out that the companies that wants to finance him does not fancy him majoring in a course that wont be useful to the company? So, he should just let go of his dreams and study the course for which hell be financed for? That should never happen. A person must always do what his heart says right. Studying to be an engineer or a doctor wouldnt make much of a different in

terms of difficulty for a brilliant student who is willing to study yet in terms of interest, someone who dreams of becoming an engineer can never make a great doctor just because someone is sponsoring him to become one. If the banking industry insists on being parsimonious, a parent who is desperate to let his child to pursue his higher studies would resolve to loan sharks who are all but scarce in Malaysia. Loan sharks as we know them are not the best of people. They are nice and all when they lend us money but there is always a reason behind their pleasant behaviour. At first, we will be able to pay the debt in terms and all seem good but a hailstorm of ill luck will follow and the person who borrowed the money faces inability to pay the debt for certain inevitable reasons. When that happens the loan sharks will show what theyre capable of. The parent would eventually be overwhelmed by a debt with too high an interest and with constant threats from the loan sharks theyll try and find a way to evade the debt seekers. They will be hunted down by the ah longs till they have to sink to a lowly life and eventually they will end their life for inability to endure a low-life for a long period of time. Of course the child would finish his studies and ensure himself a bright future (as long as he keeps away from the loan sharks, of course) but would he truly want to in return for such conditions? Yes? No? You decide. Banks offering loans to students can also help them to concentrate on studying rather than worrying about the source of fund. Lets put it his way. There are to be two situations. In situation 1, a student A begins his study at a well-known university majoring in his favorite course. The student is financed by a bank which offers him a study loan which he will have to repay later on. In situation 2, a student B begins his study at the same university as student A and majors in the same course. However, this

student fails to get extra financial support besides that from his parents. This students father uses up his savings to book a place for the son and tells the teen-ager not to worry about the money and study attentively to achieve his dreams. In both situations, each of the students gets a place at a university where they both study for the same course yet do you truly believe their results would be the same as well? I should think not. Student A gets to study in a better condition whereby he wouldnt have nothing much to worry, except his studies of course yet the same cant be said for Student B. The student B will end up thinking about all kind of things such how his parents support his expenses, how his family is living with the fact that most of the household income will now be consumed by his expenses and whether there are actually any ways for him to overcome his financial problems. This guy would end up worrying more about his finance compared to his studies. Thereby, admittedly one who receives a study loan hold a better chance to persevere in college life. This comes back to where the banking industry is in a position to make a step to provide such loans. As far as my opinions are concerned, I seriously believe that it is appropriate for banking industry to offer loans to students in the higher learning institutions. There are many reasons on why it is so and despite the fact that such reasons can be opposed by the best of people, it is important to bear on mind that arguing on facts should be the least of our concerns compared to the future of the young generation. Therefore, I would like to stress again that it is appropriate for banking industry to offer loans to students in the higher learning institutions.