KUALA LUMPUR: The National Higher Education Fund Corporation (PTPTN) has announced that the body cannot allow borrowers to only begin servicing their loans once their salary hits RM4,000 a month.
PTPTN chairman Wan Saiful Wan Jan (pic) said they have no choice as there is almost RM40bil owed to the body.
He added that if they did go ahead with the plan, future students won’t be able to take PTPTN loans and will end up jeopardising their chances to pursue a tertiary education.
He made the announcement while officiating the closing ceremony for the 10th Federation of Malay Students Union General Meeting on Saturday (Nov 10).
Wan Saiful apologised for backing down on one of Pakatan Harapan’s manifesto pledges but stressed that it was inevitable due to the country’s debt situation.
“I feel responsible,” he said, adding that he was one of those who wrote the manifesto.
He also said that they realised they couldn’t fulfil the pledge despite working hard for the past few months to come up with a solution.
The Pakatan election manifesto said that borrowers earning less than RM4,000 a month could defer their loan repayments.
In Budget 2019, the government announced that it was introducing a scheduled repayment scheme of between two to 15 per cent of the monthly income of the borrower to ensure PTPTN sustainability.
The repayment schedule for borrowers were dependent on their income level, and only applicable to borrowers earning more than RM1,000 a month.