Higher Education Minister Datuk Dr Noraini Ahmad has revealed that the government has agreed to extend the moratorium for PTPTN student loan repayment. The decision was made following the Prime Minister’s announcement to extend moratorium and bank assistance for targeted groups.
The temporary deferment of PTPTN loan repayment was supposed to end in September 2020 and it is now extended until December 2020. According to the Minister, the extension involves an estimated RM375 million and the entire moratorium will defer total payments worth RM1.125 billion. The move is estimated to benefit 1.5 million borrowers.
To further assist borrowers, the Minister shared that PTPTN has introduced several initiatives including virtual mini job-hunt in collaboration with SOCSO, restructuring of loan repayments until 60 years old and loan repayment postponement up to a maximum of 24 months.
Noraini told Muar MP Syed Saddiq in Parliament that the government will not proceed with the repayment scheme mooted by the Pakatan Harapan administration where borrowers will start paying their loans when their salary reached RM4,000. She added that if borrowers can’t repay the loan, they can arrange for scheduled repayment with PTPTN. She said the government is looking for the best approach to ensure borrowers are not burdened while at the same time they would also need to protect the interest of PTPTN.