House Speaker Chuan Leekpai on Monday criticised a proposed amendment to the Student Loan Fund (SLF) Act as an effort to curry favour with voters, saying the fund should come up with ways to promote repayments among borrowers.
His remarks followed approval of the bill by the House to amend the law resulting in interest-free loans for borrowers, no fines for those who default on their repayments and no requirement for a guarantor.
The bill, which has drawn flak from critics that it would lead to more defaults and undermine its liquidity, is pending scrutiny in the Senate. If the Senate rejects it, a joint committee between the two chambers will be set up to examine the bill.
