PM: Govt May Review PTPTN Loan Rates, Repayment Terms

The National Higher Education Fund Corporation (PTPTN) provides important opportunities for students to go into tertiary education, especially for those who would otherwise be unable to afford it. But as you’d see in the news every now and again, it’s a benefit that’s constantly being abused. It’s come to a point where the Malaysian government is considering reviewing loan rates and repayment terms for those who borrow money from the fund.

Bernama cites prime minister and Finance Minister Anwar Ibrahim as saying that the outstanding debt to PTPTN has about to hit the RM40 billion mark. A review of loan rates and repayment terms can “better assist borrowers while addressing the issue of high outstanding debts”, according to the report.

As for the current debt situation, Anwar says that “we will help students in terms of their needs, but I think we have to have the courage to revise”. Also cited by the report was Anwar saying that “we can resolve this if we do, for example, tax the very rich. Those parents who are very rich should pay, then at last we can transfer that to the poorer students”.

The prime minister was at the Cultural Activities Centre of the International Islamic University Malaysia’s Gombak Campus when the was quoted as saying the above. He was present as part of a open dialogue program between himself and nearly 3,000 university students and staff.

(Source: Bernama)