Govt defers PTPTN repayment for borrowers earning RM2,500 and below

 

BUDGET 2027 | The government has agreed to defer National Higher Education Fund Corporation (PTPTN) loan repayments for borrowers earning RM2,500 a month or less in 2027.

Prime Minister Anwar Ibrahim said borrowers earning between RM2,501 and RM3,000 a month will only be required to pay a minimum monthly repayment of RM50.

The measure is expected to benefit over 400,000 PTPTN borrowers, he added.

“PTPTN is a saviour for our youth who aspire to pursue higher education.

“Therefore, for 2027, the government agrees to grant a repayment deferment to borrowers earning up to RM2,500 a month.

“A minimum repayment of only RM50 will be charged to borrowers earning between RM2,501 and RM3,000 a month,” he said when tabling Budget 2027 in the Dewan Rakyat today.

10pct discount

In an effort to encourage systematic loan repayments, the government is also offering a 10 percent discount to borrowers with no outstanding arrears who make consistent repayments.

The government has also agreed to provide tax deductions to employers who pay PTPTN loan repayments on behalf of their employees.

This incentive covers repayments made from January 1, 2027, to Dec 31, 2028.

During the 14th general election in 2018, Pakatan Harapan promised to defer PTPTN loan repayments for graduates earning less than RM4,000 a month, in addition to abolishing the policy of blacklisting borrowers who failed to repay their loans.

However, it was not implemented as originally pledged. In November 2018, then-PTPTN chairperson Wan Saiful Wan Jan apologised on behalf of the government for being unable to fulfil the promise, citing financial constraints.

In June 2019, an independent advisory panel for PTPTN clarified that the Harapan manifesto did not promise loan forgiveness or the elimination of repayment obligations, but rather a repayment deferment for borrowers who met specific income criteria.

Student welfare projects

Meanwhile, the government is collaborating with government-linked investment companies to accelerate the execution of student accommodation projects.

The first phase of the Universiti Malaya student residence is scheduled for completion in 2031 and will benefit 10,000 students of the university.

Additionally, Retirement Fund (Incorporated) will invest RM750 million in the Vista Kampus project, involving the construction of student residences across six selected universities, including Universiti Sultan Zainal Abidin and Universiti Teknologi Mara.

To ensure student welfare remains protected, the government is also expanding the Madani Student Kitchen programme to polytechnics and teacher education institutes, with an allocation of RM20 million.

The programme provides cooking equipment, food supplies, and the "Menu Kasih Siswa" meal set priced at RM5. - Mkini