KUALA LUMPUR: The government is working on a more efficient, sustainable model for National Higher Education Fund Corporation (PTPTN) financing for the long term.
Deputy Higher Education Minister Datuk Mustapha Sakmud said the initiative involves his ministry, the Finance Ministry's Madani Monitoring Unit, and PTPTN.
He also said the current economic situation makes it difficult to waive PTPTN debts for those who have not repaid their loans.
"Indeed, it is difficult... given the government's significant commitments, and we must also consider those who have already paid," he told Datuk Shamshulkahar Mohd Deli (BN-Jempol) during Minister's Question Time in the Dewan Rakyat on Tuesday (Oct 22).
He said that so far, approximately RM76bil in loans have been repaid, with the money used for loans to other students.
He noted that the present financing mechanism gives borrowers as much room as possible to structure their repayment schedules according to financial capacity.
PTPTN had also ceased enforcement actions for loan repayments such as travel bans on defaulters since June 2018, he said.
Borrowers are given a 12-month grace period after graduation before they have to start repaying their loans, he said.
"After the 12 months, if the borrower has not yet secured employment or income, they can apply to defer loan repayments for a maximum of two years," he said.
Borrowers aiming to pursue further education are also allowed to defer repayments until after completing their studies. he added.
For borrowers who have income but are unable to make repayments according to the schedule, PTPTN provides a consultation channel to advise on restructuring the payments, he said.
