16 Nov - 2 min read
Higher Education Minister Datuk Seri Dr Noraini Ahmad revealed that approximately one million borrowers still owe the National Higher Education Fund Corporation (PTPTN) a cumulative total of RM9 billion in study loans.
Of this number, Datuk Seri Noraini explained that about 500,000 borrowers have not made any payments at all, whereas approximately 700,000 individuals have been inconsistent in meeting their obligations. Meanwhile, another 400,000 have been prompt with their repayments, and 800,000 have settled their loans fully.
“As at September, about 2.4 million borrowers had completed their studies and PTPTN should have started to receive about RM24.6 billion of the loan repayments. The corporation has managed to collect RM15.5 billion loan repayments so far,” Datuk Seri Noraini further commented, reiterating that the government has introduced some incentives to encourage borrowers in their loan repayments and to ease PTPTN’s financial burden.
Chief of such incentives is the reintroduction of PTPTN repayment discounts under Budget 2022, which offer a tiered rebate of between 10% to 15% for borrowers who repay their PTPTN loans. Specifically, those who make repayments via scheduled salary deduction or direct debit will be entitled to a 10% discount, whereas borrowers who repay at least 50% of their remaining debt in a one-off payment will enjoy a 12% discount. Finally, those who fully settle their loan can tap into the full 15% rebate.
Aside from this upcoming incentive, Datuk Seri Noraini also highlighted the PTPTN Anak Sarawak repayment incentive that was previously introduced by the Sarawak state government to help its PTPTN borrowers. Through this programme, the state government offered to settle 30% of an individual’s study loan if he or she also repays 30% of it.
“Through the Sarawak government’s proactive move, 30% of the amount still owing has been deducted and this has helped ease the burden on borrowers and encouraged them to repay their loans,” said Datuk Seri Noraini, adding that Sarawak is the only state to roll out such an initiative to assist its people. She also shared that as many as 9,321 borrowers in Sarawak have since benefited from this programme, urging other states to adopt similar initiatives as well.
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world