PTPTN re­pay­ment de­fer­ment for those earn­ing less than RM4k scrapped

The Borneo Post (Sabah) - - HOME -

KUALA LUMPUR: The Na­tional Higher Ed­u­ca­tion Fund Cor­po­ra­tion (PTPTN) has an­nounced that the body can­not al­low bor­row­ers to only be­gin ser­vic­ing their loans when their salary reaches RM4,000 a month.

PTPTN chair­man Wan Sai­ful Wan Jan said they have no choice as there is al­most RM40 bil­lion owed to the body.

He added that if they did go ahead with the plan, fu­ture stu­dents won’t be able to take PTPTN loans and will end up jeop­ar­dis­ing their chances to pur­sue a ter­tiary ed­u­ca­tion.

He made the an­nounce­ment while of­fi­ci­at­ing the clos­ing cer­e­mony for the 10th Fed­er­a­tion of Malay Stu­dents Union Gen­eral Meet­ing yes­ter­day.

“I feel re­spon­si­ble,” he said, adding that he was one of those who wrote the manifesto.

He also said that they re­alised they couldn’t ful­fil the pledge de­spite work­ing hard for the past few months to come up with a so­lu­tion.

The Pakatan elec­tion manifesto said bor­row­ers earn­ing less than RM4,000 a month could de­fer their loan re­pay­ments.

In Bud­get 2019, the gov­ern­ment an­nounced that it was in­tro­duc­ing a sched­uled re­pay­ment scheme of be­tween two to 15 per cent of the monthly in­come of the bor­rower to en­sure PTPTN sus­taina bil­lion­ity.

The re­pay­ment sched­ule for bor­row­ers were de­pen­dent on their in­come level, and only ap­pli­ca­ble to bor­row­ers earn­ing more than RM1,000 a month.

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