PTPTN loan waived for first class honours graduates from 2019

by AZALEA AZUAR / pic BERNAMA

PRIME Minister Datuk Seri Ismail Sabri Yaakob has announced that the National Higher Education Fund Corp (PTPTN) borrowers who graduated with first class honours from 2019 onwards are not required to repay their study loan.

He said this loan waiver is given to these graduates regardless of their economic status, race or religion.

“This is as an encouragement to the children of Malaysian families to study hard and get the best approval in their studies.

“At the age of 25 years, PTPTN has now become the country’s main higher education fund agency that is committed to carrying out its mandate,” the premier said during PTPTN’s Silver Jubilee Celebration today.

During the announcement of Budget 2019, the exemption was stopped for all and given only to students from the bottom 40% income group (B40) families.

To-date, PTPTN has managed to help a total of 3.67 million Malaysians fund their higher education amounting to RM66.87 billion.

More than two million (82.04%) have repaid their loans with a total collection of RM17.8 billion.

“The government, through PTPTN, has provided an allocation of over RM3 billion per year to finance education loans to an average of over 180,000 new students who successfully continue their studies at higher level,” said Ismail Sabri.

It has also introduced the Simpan SSPN (National Education Saving Scheme) initiative since 2004 so Malaysians will not be heavily dependent on loans.

Currently, it has recorded a total savings deposit amounting to RM12.5 billion with a total of 5.4 million accounts until the end of last month.

Higher Education Minister Datuk Seri Dr Noraini Ahmad also highlighted that PTPTN has approved more than 3.62 million education loans with disbursements amounting to RM65.51 billion until December 2021.

“Among those who receive this benefit, many have been accepted to serve and recognised for their expertise in various sectors — some become civil servants, some are involved in the corporate world and some are even active as politicians.

“The noble efforts by PTPTN in managing loans for higher education purposes is to ensure that no student drops out of entering higher learning institutions due to financial problems, especially those in the B40 groups,” she said.