We refer to the letter PTPTN is pulling my leash even tighter by ‘PTPTN Prisoner’. Thank you for the comments.

Loan payments are made based on principal amounts and administrative costs. The administrative costs takes effect six months from the date of graduation; which is also deemed the end of the loan disbursement schedule.

A 3% administrative cost is calculated based on principal balance of the loan. This was made clear at the point of signing. Therefore when students make higher monthly payments than the stipulated installment amount by PTPTN, the total administrative cost will be lower as the balance goes to reducing the principal loan amount.

The reverse is also true. When students pay lower than the specified installment amount, they would essentially be only paying the administrative cost, causing a higher outstanding of their own loan balance.

In the case ‘PTPTN Prisoner’, the principal amount borrowed was RM48,000 subject to a contracted repayment period of 15 years (180 months). Based on the PTPTN schedule, a borrower has to pay an administrative cost of RM120 for the first month.

This amount reduces monthly as the principal amount reduces. If the borrower pays less than the monthly installment amount, it certainly will not be enough to cover the administrative costs incurred. This will show an increase in the total loan balance.

When students sign for a PTPTN loan, they contracted themselves to these terms. The terms stipulated are not new and have already been made aware to students and their guarantors.

Full explanations on the formulae and calculation method of PTPTN loan repayments can be viewed at the PTPTN website under Media Collection selection.

PTPTN also offers simulations for repayment schedules (Loan Calculator Selection). For further clarifications, do please contact our call centre at 03 - 2092 7788.

The writer is public relations officer for PTPTN.