Cabinet agrees to raise PTPTN repayment threshold

PARLIAMENT | Putrajaya will bump up the two percent mandatory pay cut threshold for National Higher Education Fund (PTPTN) loan repayment to an RM2,000 monthly salary. 

Deputy Education Minister Teo Nie Ching said today that the earlier RM1,000 threshold announced in Budget 2019 speech was reviewed by the cabinet on Nov 23.

She added those in the bottom 40 (B40) and middle 40 (M40) income groups who achieved first class honours for their degrees would be exempted from repaying their study loans.

"I am also pleased to announce that the cabinet meeting on the exemption (of repaying PTPTN loans) given to B40 will also be extended to those in the M40 group.

"As for the students in the top 20 (T20) income group (who obtain first class honours), since they come from families that can afford it, we hope they can continue to repay," she said during the question-and-answer session at the Dewan Rakyat.

As Teo noted, a total 53,113 PTPTN recipients will not have to repay their loan if they obtain first class honours.

Of that figure, 37,355 graduated from public universities, and the rest in private institutions.

In his Budget 2019 speech on Nov 2, Finance Minister Lim Guan Eng announced that high-achieving students from B40 households would only receive discounts instead of the full exemptions they were entitled to under the previous administration. 

On loan repayment, Teo said scheduled salary cuts of between two percent and 15 percent will be imposed on recipients.

The deputy minister added that when the country's fiscal situation improves, the Pakatan Harapan administration will consider fulfilling its promise to raise the repayment threshold to an RM4,000 monthly salary.

At this juncture, Tajuddin Abdul Rahman (BN-Pasir Salak) stood up and said sarcastically that raising the threshold to RM2,000 shows that the country's coffers are not as depleted as Harapan had claimed.

"(We) have to put pressure (on the government), only then they will give. This is flip-flopping. (We must) keep the pressure on," said Tajuddin.

"How was the calculation done? How can the government suddenly can afford this?" he asked.

In her response, Teo said the cabinet reviewed the threshold after much consultation.

"This is our willingness to listen to the voice of the people. We are unlike the previous administration which refused to listen. We learn from past mistakes," she added. 

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