KUALA LUMPUR: National Higher Education Fund Corporation (PTPTN) will deduct a mandatory 2 percent of salaries of borrowers earning RM2,000 and above, according to Deputy Education minister Teo Nie Ching.
She said that the percentage of deductions will also increase as their salaries increase.
“To ensure the youth aren’t burdened, the government will begin a 2% or RM40 mandatory salary deduction the moment a borrower’s salary has reached RM2,000.
“This cut will increase progressively according to the wages of the borrower to 15% of their salaries,” she said.
She was replying to a question by Wong Kah Woh (PH-Ipoh Timur).
She said that this was decided in a Cabinet meeting and it was also decided that this deduction will apply to middle 40 (M40) group as well as the bottom 40 (B40).
“For students in the top 20 (T20) group who get first-class honours, we hope that since they come from affluent families, they will continue to service their loans,” she added.
In the 2019 Budget tabled earlier this month, the government announced a scheduled repayment scheme of between 2% and 15% of the borrower’s monthly income, applicable to those earning more than RM1,000 each month.
Wong initially asked the ministry to state the number of PTPTN borrowers who had obtained a bachelor’s degree with first-class honours and who had been exempted from repaying their loans. He also asked whether the ministry was willing to extend this exemption to part-time students in recognition of their academic achievements.
She replied that at this juncture, PTPTN will not exempt part time students.
She also said that PH’s promise for repayment to begin at RM4,000, the government will consider it once their financial position allows for it
Teo said as of Oct, a total of 53,113 borrowers had been exempted from repaying their loans as they had obtained first-class honours.
This involved 37,355 students from public institutions of higher learning and 15,758 students from private institutions of higher learning.
Deputy Education minister Teo Nie Ching.
