PTPTN Will Now Only Deduct Repayments From Borrowers Who Earn Above RM2,000 A Month
There will be exemptions as well.
Deputy Education Minister Teo Nie Ching has announced that National Higher Education Fund Corporation (PTPTN) borrowers who earn above RM2,000 will have mandatory deductions from their salary
Teo made the announcement during Question Time in Dewan Rakyat today, 27 November, reported Malay Mail.
"To ensure that we won't burden the youths, the government has decided to begin a 2% or RM40 mandatory salary deduction the moment a borrower's salary has reached RM2,000," Teo said today, adding that the new decision was made following consultations.
"This will increase according to their salary increment."
Additionally, PTPTN borrowers in the middle 40% income group (M40) who obtain first class honours will be exempted from repayments
Free Malaysia Today reported that the exemption will happen alongside the one given to students from the bottom 40% (B40) income group.
The exemption applies to both students in public and private higher education institutions, according to the Malay Mail report.
"For students in the top 20 (T20) group who get first-class honours, we hope that since they come from affluent families, they will continue to service their loans," the Kulai MP said.
Previously, during the tabling of Budget 2019 on 2 November, Finance Minister Lim Guan Eng announced a mandatory deduction repayment scheme for PTPTN borrowers
Through the initiative, repayment of loans would be ensured through scheduled deductions of between 2% to 15% from the borrower's salary.
It would have been applied to those who earned a salary of RM1,000 and above.
Prime Minister Tun Dr Mahathir Mohamad announced in August that the PTPTN debt was in a severe situation: