PTPTN loan repayment discount incentives
DIANA AZIS
SHAH ALAM - The National Higher Education Fund Corporation (PTPTN) no longer wants to be known only as an agency that provides education loans and a debt collector, but also wants to be seen as an education fund through the National Education Savings Scheme (Simpan SSPN).
PTPTN as an agency under the Higher Education Ministry played an important role in supporting the government's desire for the sustainability of higher education by ensuring that no student eligible to enter a Higher Education Institution (IPT) failed to enter an IPT due to financial problems.
Since it was established in 1997 until April 30, this year, the agency has helped a total of 3.82 million students with a total of RM69.48 billion in loans disbursed.
The channeled funds were given for the purpose of covering tuition fees as well as part of the borrower's living costs.
Therefore, in an effort to reduce the burden on borrowers to repay the outstanding debt after graduating, the government through the 2023 Budget has agreed to implement two initiatives.
The first initiative covered PTPTN loan repayment discounts for a period of three months from March 1 to May 31, this year through four categories, namely:
- 20 per cent discount on the remaining debt for full settlement of the loan.
- 15 per cent discount for settlement of at least 50 per cent of the total outstanding debt.
- 15 per cent discount for repayment through salary deduction or scheduled direct debit repayment.
- Five per cent discount for repayment through the myPTPTN application.
The second initiative was granting deferred repayment to borrowers with a monthly income of RM1,800 and below for a period of six months through PTPTN's official portal at www.ptptn.gov.my starting March 1.
The loan repayment discount incentive is open to all borrowers including those who have been subjected to enforcement action and recipients of Loan Advances (WPP).
PTPTN in a statement said borrowers saved more with the 20 per cent settlement as they settled the payment earlier than the fixed repayment schedule, they will save on administrative costs or fees and they get a reduction on the amount of repayment that needed to be made.
PTPTN is always concerned with the borrowers' burden and will try to help borrowers by providing discount incentives like these.
The government's concern in granting such discounts should also be fully utilised by borrowers especially to help all young people who were affected by the current economic situation.
Meanwhile, for Nur Atiqah Zahaba, 27, said the discount incentives implemented by the agency can ease the burden of borrowers and thus help improve the financial management of the concerned group.
"I was able to get a 15 per cent discount for the refund through salary deductions and that mechanism made it easier to pay besides it being done consistently.
"I was very relieved when I successfully settled the PTPTN loan and this is a proud achievement for me because I am able to manage my finances well.
"Indirectly, the burden of debt has been reduced and now, I can move forward with more financial freedom," she said when contacted by Sinar Harian.
Nur Atiqah also expressed her gratitude following the government's concern for those who were burdened by loan repayment, especially those who had to pay debts while continuing their studies.
"Reimbursements made will immediately reduce the amount of wage costs that needed to be paid. I can also use the remaining money for other purposes," she said.
Meanwhile, for Rahimah Radzi, 26, the 20 per cent discount incentive for those who wanted to make a "lump sum" payment gave them relief as they can save money.
"My advice to other borrowers, if they are unable to pay in full or in half, they can do (payment) by direct debit according to the category offered.
"While the offer is still open, we as borrowers can take advantage of the assistance that the government has given for the sake of comfort in the future," she said.
The same view was also voiced by Mohamed Asyraf Md Zan, 27. He described the incentive of giving discounts as an effort to attract more borrowers to make repayments to the agency.
Furthermore, now with the myPTPTN application, it can be done anywhere, quickly and easily. Everything is just at your fingertips.
He said the existing offer succeeded in encouraging borrowers, especially young people, to make consistent payments.
"Personally, I think this effort should continue for a longer period, maybe throughout the year. Of course, more borrowers will come forward to make payments.
"For me, giving this discount has indirectly motivated me to make loan payments even in small amounts. I recommend other borrowers to grab this opportunity before the end of the offer date.” he said.
