Perak Education Loans Borrowers Can Get 30% Discount If They Pay It Back By Year End

4,632 borrowers have yet to settle their outstanding balance as of 31 December 2016.

Cover image via Getty Images

Borrowers of the Perak state government higher education loan can get a 30% discount if pay back by 31 December 2017

Image via NST

They will be entitled to this discount as long as they make a full settlement of their remaining loan within the stipulated deadline, starting 1 June until 31 December 2017.

According to Bernama, State Education, Science, Environment and Green Technology Committee chairman Datuk Muhammad Amin Zakaria said that the matter was decided last July at the Perak Higher Education Scholarship Trustees Board meeting.

"We are giving a 30% discount to borrowers who have an outstanding loan of RM1,001 and above to make full settlement of their loans," he said, adding that the discount scheme is intended to reduce the burden of borrowers.

The state government is currently burdened by unpaid education loans amounting to RM17.5 million

State Education, Science, Environment and Green Technology Committee chairman Datuk Muhammad Amin Zakaria (second from right) with recipients of the Perak State Government Higerh Education Loan Session 2017/2018.

Image via L Manimaran/Berita Harian

It was reported that that outstanding amount has yet to be recovered from 4,632 borrowers as of 31 December 2016.

Muhammad Amin revealed that most borrowers said that they are either jobless or facing financial instability as reasons for not repaying their loans accordingly.

"We understand there may be some constraints to repay the loans, however, the borrowers should meet us, and from there, we can discuss on how to resolve it (the balance of the debt)," he was quoted as saying by Bernama.

In order to safeguard the future of other children, Perak is planning to take steps against study loan defaulters

According to Muhammad Amin, legal action has been taken against 20 borrowers who have failed to settle their loans since 2015 because they refused to repay their loans although they already have a permanent job.

"We (the Perak state government) do not wish to take action against the Perak children if we can, however, the state government has to take into consideration the future of the other children that wants to make this loan," he was quoted as saying by Suara Perak.

He said that those who default on loans will face consequences for their actions which include getting blacklisted and their names will be handed over to Credit Reporting Agency (CRA) such as Central Credit Reference Information System (CCRIS) and CTOS Data System Sdn Bhd (CTOS).

Do you think more borrowers will repay their study loans if such discounts are offered? Let us know your thoughts in the comment section below.

Meanwhile, the Selangor state government is offering zero-interest education loans for students:

Also, PTPTN borrowers are eligible for a 10% discount if they repay their loans online:

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