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ITB criticized for offering online loans for tuition fees
ITB is criticized for offering high-interest online loans as part of the tuition payment plan for its students.
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The Bandung Institute of Technology (ITB) has been criticized for requiring students who cannot pay their tuition fees to use online loan platform Danacita or take a study break. (Shutterstock/File)
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andung Institute of Technology (ITB) has been criticized for offering a single tuition fee (UKT) payment plan facilitated by online lending platform Danacita.
ITB's payment plan came into the spotlight after a post on X, formerly known as Twitter, went viral.
The post said that ITB was collaborating with the online lending platform, allowing students to pay tuition fees in installments over six to 12 months. Applying for the payment plan requires no down payment or collateral, just like other online loans.
Ubaid Matraji, the national coordinator of the Indonesian Network of Education Watch (JPPI), expressed concern that ITB's payment plan could push students into debt.
"Students who cannot afford to pay should receive assistance, but that is not the case here," Ubaid said on Friday, as quoted by bbc.com.
"Instead, they are offered online loans, leading them into systemic debt and making it difficult to repay. Intimidation is also involved. This is a form of extortion."
Students who fail to pay their UKT are told to take a study break until they can pay the fee.
