Moratorium for PTPTN loans extended to December

PARLIAMENT | Higher Education Minister Noraini Ahmad told the Dewan Rakyat today that the government is extending the deferment of loan repayments under the National Higher Education Fund Corporation (PTPTN) fund for a further three months.

She said the suspension of monthly repayments, which began in March and was initially scheduled to end on Sept 30, has now been extended until Dec 31.

“This involves an estimated additional sum of RM375 million, which means the total estimated deferral of repayment is RM1.13 billion.

“All PTPTN borrowers will be given an automatic extension on deferment; they will not have to make any application," she said.

Noraini said borrowers who wish to continue making the loan repayment can continue to do so via the online repayment platform.

Noraini said the government was aware of the financial constraints faced by some PTPTN borrowers who lost their jobs due to Covid-19 and that this move would help ease the burden of the borrowers.

She was responding to a question by Muar MP Syed Saddiq Abdul Rahman who asked if the new Perikatan Nasional government was going to uphold the Cabinet decision of the previous Pakatan Harapan administration that those who were unable to repay the loan would not have to do so as long as their monthly salary remained below RM4,000.

Noraini said the government needed to maintain a balance between being compassionate towards the plight of struggling students and the need to have enough funds to keep the PTPTN going.

Yesterday, Noraini had responded in a written reply to a similar question by Bangi MP Ong Kian Ming who had asked whether the government planned to introduce income-contingent repayments for PTPTN loans after the end of the loan repayment period in September 2020.

"Taking into account the economic situation as well as the financial position currently, the government is of the view that the implementation of payment methods based on income is not suitable," she said.

Noraini said scheduled deduction from the salaries of borrowers had been identified as a more appropriate method to ensure easier and more efficient PTPTN repayment collection.

She added that several initiatives have been introduced to help alleviate the burden faced by borrowers.

These included a 'Virtual Mini Job Hunt for PTPTN Borrowers' in collaboration with Socso and the possible restructuring of the loan repayment up to the age of 60 years as well as a deferred repayment of the loan for a maximum of 24 months.

"Due to the moratorium for six months until Sept 30, the collection of RM750 million was deferred," she added. - Mkini