Prime Minister Datuk Seri Anwar Ibrahim has announced that the government is considering making monthly salary deductions to Malaysians with the National Higher Education Fund Corporation (PTPTN) study loan who have entered the workforce.
A compulsory monthly deduction through the Income Contingent Loan (ICL) programme, Anwar said that this move is meant to keep PTPTN sustainable as currently, recovering PTPTN study loans from those who have entered the workforce remains a challenge.
In a speech by the Prime Minister read out by Deputy Prime Minister Datuk Seri Fadillah Yusof at the Higher Education Ministry’s Open Day closing ceremony in Putrajaya yesterday, Anwar asserted that the mandatory monthly salary deduction was a move recommended by the National Higher Education Policy Review Committee (NRC).
Specifically, ICL via automatic salary deductions made by the Inland Revenue Board (LHDNM) is touted as the most practical and least-burdensome proposal for PTPTN loan borrowers to settle their debts.
Besides that, Anwar added that ICL will provide incentives to individuals and employers making repayments and encourage more borrowers to carry out their civic responsibility for future students who want to continue their studies but can’t afford it.
The speech also revealed that the outstanding debt owed to PTPTN as of May 2023 was RM66.9 billion. Anwar stressed that should this amount be recovered, approximately 2.5 million new tertiary students can be supported via PTPTN loans.
So, what do you guys think of the government potentially making mandatory salary deductions for PTPTN loan borrowers? Share your thoughts with us in the comments.
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