Education

Budget 2023: PTPTN to give up to 20% discount with partial, full payments

Finance minister says reductions to encourage loan servicing

Updated 4 years ago · Published on 07 Oct 2022 7:31PM

Budget 2023: PTPTN to give up to 20% discount with partial, full payments
Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz reminds borrowers with the National Higher Education Fund Corp to settle their debts to avoid denying other Malaysians the same opportunity. – File pic, October 7, 2022

KUALA LUMPUR – Borrowers with the National Higher Education Fund Corp (PTPTN) will receive discounts on their loans if they manage to make full or partial payments by April 30, 2023, announced Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz today.

He explained that the initiative is meant to encourage proper loan servicing while providing opportunities to other graduates seeking education assistance from PPTN.

“It is a responsibility for the PTPTN borrowers to settle their debt.

“This is already clear and also a demand in religion. If the debt is not paid, we are denying other children of Malaysia the same opportunity,” he said today when tabling Budget 2023 today.

The discount rates on loans include a 20% discount for those who fully repay their loan, a 15% discount for a minimum of 50% repayment in a single payment, and a 15% discount for payments in instalments or scheduled direct debit.

Tengku Zafrul said the prime minister had previously agreed to raise the PTPTN loan rates and provide computer loans for the M40 group, in addition to loan repayment exemptions to graduates who earn first-class bachelor’s degrees beginning from 2019.

Previously, Prime Minister Datuk Seri Ismail Sabri Yaakob announced that the PTPTN loan for students in the M40 (M1) group will be increased from 75% to 100%.

Higher Education Minister Datuk Seri Noraini Ahmad said the increase in PTPTN loans is expected to benefit a total of 64,301 students in public institutions of higher learning. – The Vibes, October 7, 2022

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