By DayakDaily Team
KUCHING, April 12: The Ministry of Higher Education welcomes Prime Minister Anwar Ibrahim’s proposal for the government to look into reviewing loan rates and debt repayment terms under the National Higher Education Fund Corporation (PTPTN) to aid borrowers.
According to Bernama, the ministry said PTPTN will continue to assist borrowers in settling their debts via negotiations for more flexible repayments as an ‘empathetic approach’ not to burden borrowers and enable them ample time to pay their debts.
“This is also to ensure that higher education in Malaysia remains inclusive, sustainable, and relevant for future generations.
“Therefore, the ministry welcomes the prime minister’s proposal that the government is considering reviewing loan rates and debt repayment terms while also addressing the issue of high outstanding debts,” it said in a statement.
At the same time, the ministry also announced that PTPTN has reached RM40 billion in accumulated debt, with outstanding debts totalling RM11 billion to date.
“The ministry is aware of students’ concerns and is currently examining PTPTN’s overall financial position and sustainability to review the loan rates.
“The ministry, through its higher education institutions, is also attentive to students’ concerns and provides appropriate assistance to those facing difficulties during their studies,” it said.
On April 11, Anwar said the government would consider reviewing any increase in the loan rate.
“We just have to hold on for now. We will help students in terms of their needs, but I think we need the courage to revise (the rates and terms),” he said.
Last month, Deputy Higher Education Minister Mustapha Sakmud said the government was considering bringing back the travel ban, among other measures, to boost loan repayments among PTPTN borrowers.
In January, PTPTN issued 2.1 million reminder notices to borrowers who had failed to repay their loans according to their set schedules.
About 13.55 per cent, or 383,637 borrowers, were reported to have defaulted on their PTPTN loans at the end of last year. — DayakDaily
