B - Cost of Living B05. YOUTH

B05-04: (PTPTN) Given commensurate discounts or the loan will be forgiven completely

May 10, 2018
Nov 2018

No more discounts for PTPTN borrowers

The Star November 02, 2018

THERE will be no more discounts for National Higher Education Fund Corporation (PTPTN) borrowers who fully settle their loans or through salary deductions. In the previous budget, the government extended discounts of 20% on the outstanding debt for a full settlement; 10% for repayment of at least 50% on the outstanding debt made in a single payment; and 10% for repayment through salary deductions or scheduled direct debit. These discounts are available until Dec 31 this year. PTPTN chairman Wan Saiful Wan Jan said these are part of the reform agenda by PTPTN to solve the extremely high debt burden. In a statement, he thanked the new government for taking into consideration PTPTN’s requests. “I will give detailed explanations in meetings with stakeholders nationwide in the near future,” he said. In response to this, lab assistant Sivanasen Thinesh, 28, said he is considering settling his loan before the end of the year. “The discount lightens our load; 20% is a lot,” he said. An accounting student known just as Mariah, 21, said: “As a student it’s disappointing as I had looked forward to the discount all my university years only to receive this news in my final semester.” “But as a citizen, I know it’s not a hasty decision by the government as the country’s debt level is worrying and I believe this is one of the measures to minimise spending and manage the debt,” said the undergraduate. Hong Lee Lee, 21, said it would not make a difference as some fresh graduates were unable to pay back. “We don’t even have money to buy a car or buy house now,” she said. She hoped the discounts would be offered again in Budget 2020.