[UPDATED] PTPTN loan repayment moratorium may be extended: minister

KUALA LUMPUR – The government may extend the moratorium on National Higher Education Fund Corporation (PTPTN) loans repayments due to end next month, Higher Education Minister Datuk Noraini Ahmad told the Dewan Rakyat today.

Noraini (BN-Parit Sulong) said the matter is being discussed, adding that the government had previously agreed to defer loan repayments from April to September, before extending it to December.

“On the possibility of a third moratorium, the ministry has taken initial action to discuss (the matter) with the relevant agencies, including the Finance Ministry. The matter will be brought up for further consideration,” she said in her Budget 2021 winding-up speech today.

She added that the current government will not resort to blacklisting borrowers who do not, or are unable, to make repayments, as was the case under the previous Barisan Nasional administration. 

“Previously, what the then government did was to blacklist those who did not repay the loans. But we do not want to take such drastic measures at this Covid-19 time,” she said.

Noraini was responding to proposals by a number of MPs during their previous budget debates for the government to extend the PTPTN loan moratorium by at least another six months.

Noraini said the PTPTN moratorium has benefited some 1.5 million borrowers, with the total estimated deferment amounting to RM1.13 billion to date. 

She added that, despite the deferment, 422,609 borrowers continued to make repayments, with PTPTN collecting RM595 million between April and October. 

“We are also currently reviewing proposals to exempt loan interests and to provide discounts on repayments.”

On suggestions for the amount loaned out to be increased next year, Noraini said the ministry has agreed to increase the maximum loan per semester from RM6,800 to RM8,000. 

On what measures will be taken to ensure PTPTN survives with reduced loan repayments for an extended time period, Noraini said the fund is in the midst of formulating methods to ensure repayments increase once the moratorium ends. 

She said PTPTN is also considering providing tax incentives to employers who help repay the loans of their employees. – The Vibes, November 25, 2020