KUALA LUMPUR: The government has agreed on scheduled salary deductions for National Higher Education Fund Corporation (PTPTN) borrowers earning a monthly income of RM2,000 and above instead of from RM1,000 set earlier, based on Budget 2019.
Deputy Education Minister, Teo Nie Ching said the government had also decided that PTPTN loan repayment exemption be extended to those from the middle-income (M40) group who obtained a first-class degree, instead of just for those from low-income (B40) households previously.
“The Cabinet meeting on Nov 23, 2018, agreed on salary deductions for PTPTN borrowers at two percent or RM40 when their salary reaches RM2,000 and the deductions to be on a progressive scale of up to 15 percent, depending on the borrowers’ monthly salary, ” she said.
On the extension of repayment exemption to borrowers from the M40 group, Teo said this was not only meant for students from public higher education institutions, but also from private tertiary institutions.
She was replying to a supplementary question from Wong Kah Woh (PH-Ipoh Timor) on PTPTN loan repayment exemption for loanees who obtained excellent academic results.
At the tabling of Budget 2019 early this month, Finance Minister Lim Guan Eng announced the implementation of scheduled salary deductions of two to 15 per cent for borrowers earning RM1,000 and above monthly, besides repayment exemption for borrowers from the B40 group if they obtained a first-class degree.
Teo said that up to October this year, 53,113 borrowers – 37,355 of them from public tertiary institutions and 15,758 from private institutions – obtained repayment exemption for getting first-class honours degree.
She said the PTPTN loan repayment collection from June to September this year amounted to RM817.75 million.
To Wong’s original question on PTPTN loan repayment exemption for part-time students who achieved academic excellence, Teo said there were no plans to give such exemption to this group.
She also said that loan repayment for those earning a monthly income of above RM4,000 would be reconsidered if the country’s financial situation became strong. – Bernama