Starting from 1st January 2019, there will be no more discounts for National Higher Education Fund Corporation (PTPTN) borrowers who fully settle their loans or through salary deductions.
The previous budget which ends 31st December 2018 had extended discounts of 20% on the outstanding debt for a full settlement; 10% for repayment of at least 50% on the outstanding debt made in a single payment; and 10% for repayment through salary deduction or schedule direct debit.
PTPTN chairman Wan Saiful Wan Jan said these are part of the reform agenda by PTPTN to solve the extremely high debt burden. It was reported previously that a total of RM 36 billion PTPTN loans were unpaid.
The focus of this new budget will be however to help students from B40 households as if they successfully obtain first class honours in their studies, they will enjoy a discount on their loans. Under the new proposed loan repayment schedule for borrowers, they will be a progressive loan repayment schedule with a percentage ranging from 2% to 15% based on the borrower’s monthly income depending on their income level.
“This repayment schedule will only apply to those with at least RM1,000 in monthly income,” said Lim.
There will be implementation to write off on the balance of loans for borrowers aged 60 and above with monthly income of less than RM4,000.