SHAH ALAM - In a bid to encourage borrowers to take responsibility for their debts, the government has introduced a discount programme for the National Higher Education Fund Corporation (PTPTN) loans.
Finance Minister Datuk Seri Anwar Ibrahim said the initiative will be effective from Oct 14 this year until March 31, 2024.
"Debts must be repaid,” he said when tabling the second Madani Budget at the Dewan Rakyat today.
Listed are the following rates:
- A 10 per cent discount on the outstanding balance for full loan settlement.
- A 10 per cent discount for payments of at least 50 per cent of the outstanding balance in a lump sum.
- A 15 per cent discount for payments through scheduled salary deductions or direct debits.
Anwar also announced that starting this January, registration fees for entry into public universities will limited not to exceed RM1,500.
At the same time, the Prime Minister said existing students who cannot afford to pay tuition fees will not be prevented from registering for subjects each semester, and payments can be made after subject registration.
"Any payment regulations by the university should take into consideration the welfare of students.
"In the future, the Student Affairs Division of universities, in collaboration with PTPTN or other relevant bodies, should play a role in simplifying the process and assisting students and prospective students who have difficulties with fee payments.” he said.
The controversial PTPN student loans was among the 10 promises listed by Pakatan Harapan and pledged by Anwar, which was stated as "termination of PTPN loan repayment in stages”.