KUALA LUMPUR: There are no plans for a targeted abolition of National Higher Education Fund Corporation (PTPTN) loan repayments for borrowers from the (B40) income group, says Datuk Seri Mohamed Khaled Nordin.
The Higher Education Minister told Parliament that based on the projection made by PTPTN, the proposed targeted abolition would involve a huge cost, amounting to RM42.34bil and involving some 1.84 million borrowers.
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"However, the government is always caring and will give priority to the welfare of borrowers by providing loan repayment facilities," he told Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang) during Question Time on Tuesday (Feb 14).
Wan Ahmad Fayhsal had asked when the government will introduce targeted PTPTN loan abolition for B40 households and the number of borrowers who will benefit from it.
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Khaled said that there were various options for borrowers to ease loan repayments such as allowing postponements if the borrower is pursuing further studies or is unemployed.
He also noted that the government has allowed loan repayments to be restructured based on the borrowers’ financial capabilities.
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“(PTPTN) also provides some discounts if the loan is paid in full. Loan repayments also only begin 12 months after the borrowers have completed their higher studies to give them time to earn a stable income,” said Khaled
To an additional question whether the government has promised to introduce the targeted abolition since it was previously listed as part of the election manifesto, Khaled said one of the parties under the Unity Government had decided to totally abolish PTPTN loan repayments.
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"As I mentioned, if the abolition is done, it will involve a huge cost.
"Perhaps some parties have made various pledges before but under the current unity government, we have decided to adopt policies that are commonly similar among the parties.
"So in this matter, we must look at the issue of capabilities and sustainability but in this matter, it cannot be done at this point," he said.
Economy Minister Rafizi Ramli then stood up and wanted to refer Wan Ahmad Fayhsal to the Parliament's Rights and Privileges Committee for trying to mislead the Dewan Rakyat on the issue.
"In this matter, I want to refer Machang to the committee for saying that there was a promise to abolish PTPTN and it was listed part of our election manifesto, that is a lie.
"It is not part of our manifesto," he said.
In response, deputy speaker Datuk Ramli Mohd Nor asked him to file a written complaint to the Speaker’s office.
