KUALA LUMPUR: The government has agreed to defer repayments of loans owed to the National Higher Education Fund Corporation (PTPTN) until December, the Dewan Rakyat was told today.
Higher Education Minister Datuk Dr Noraini Ahmad said the decision was made following the recent announcement on the targeted three-month extension on bank loan moratoriums.
She said prior to this, the government had implemented a six-month deferment for PTPTN loan repayments that would end in September.
"The move would benefit 1.5 million borrowers, involving a total of RM750 million. Following the recent announcement by the prime minister, the government has agreed to also extend the moratorium for PTPTN loans until December, involving another RM375million, making up a total of RM1.125b," she said in her wrap-up speech on the debate on the Royal address today.
Noraini said PTPTN introduced several initiatives to assist borrowers, including the virtual mini job-hunt, a collaboration with the Social Security Organisation (Socso), restructuring of loan repayments until 60 years old and a maximum 24-monh loan repayment postponement.
In response to a query by Syed Saddiq Syed Abdul Rahman (Independent-Muar), Noraini said the government would not proceed with the repayment scheme mooted by the previous administration to impose the repayment mechanism that enabled borrowers to start serving the loans only when their monthly salary reached RM4,000.
"If the borrowers are unable to repay the loans, they can come forward and arrange for a scheduled repayment with PTPTN.
"We are always looking for the best approach to ensure that borrowers are not burdened, but at the same time we have to also protect the interest of PTPTN."