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New threshold for PTPTN deductions to come into effect next year

Bernama  |  Published:

The salary deductions for the repayment of National Higher Education Fund Corporation (PTPTN) loans of those earning over RM2,000 a month will begin effective January 2019, Education Minister Maszlee Malik said today.

The exemption for those from the middle 40 (M40) group who obtained first class honours degrees will also be implemented beginning next year.

Maszlee said the deduction of two percent or RM40 for borrowers whose salaries were at RM2,000 was decided by the cabinet on Nov 23.

"What we can do at this time is to place RM2,000 as a threshold for the start of repayment, and then increase based on the borrower’s income.

"The cabinet also agreed to exempt loan repayments for those who received a first class honours degree from the M40 group. 

"The original proposal was only for those from the bottom 40 percent (B40) income group," he told reporters at the Parliament lobby today.

On Pakatan Harapan's pledge declared in its manifesto that it would make it compulsory for borrowers earning RM4,000 to repay their loans, he said the government would try its best to fulfil it when the country's financial situation has stabilised.

- Bernama

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