Attention, PTPTN borrowers!
Speaking in Parliament today (27th November), deputy education minister Teo Nie Ching recently announced that Malaysians who have borrowed from the National Higher Education Fund Corporation (PTPTN) will have 2 per cent of their salaries mandatorily deducted once they begin earning RM2,000. The percentage deducted will reportedly increase along with the borrower’s salary.
She was quoted by the Malay Mail as saying,
“To ensure that we won’t burden the youths, the government has decided to begin a 2 per cent or RM40 mandatory salary deduction the moment a borrower’s salary has reached RM2,000. This will increase according to their salary increment.”
As for those who graduated with first class honours, those in the bottom 40 per cent income group (B40) and the middle 40 per cent income group (M40) will be exempted from repaying their loan.
However, Teo stated that PTPTN borrowers from the top 20 per cent income group (T20) who graduate with first class honours will still have to repay their loan as they come from well off families.
Addressing the initial proposal for making PTPTN borrowers eligible to repay their loans once they start earning RM4,000 and above, the deputy education minister stated that the government will consider it once their financial position allows it.
It was initially announced by Finance Minister Lim Guan Eng during his Budget 2019 presentation that the compulsory 2 per cent salary deduction would begin for PTPTN borrowers once they start earning RM1,000 a month.
This prompted a number of students to protest outside the Malaysian Parliament, pointing out the steep cost of living for someone earning a salary of RM1,000.
What are your thoughts on this decision? Let us know in the comments below.
Also read: Students March 9km to Parliament to Protest Deducting 2-15% From Salary to Repay PTPTN