Now, PTPTN wants your views on how it can collect student loan debt

An employee serves a customer at the National Higher Education Fund Corporation (PTPTN) in Kuala Lumpur July 16, 2018. — Picture by Firdaus Latif
An employee serves a customer at the National Higher Education Fund Corporation (PTPTN) in Kuala Lumpur July 16, 2018. — Picture by Firdaus Latif

KUALA LUMPUR, April 24 — The National Higher Education Fund Corp (PTPTN) wants Malaysians to suggest ways in which it can collect the RM6.3 billion in arrears from borrowers.

PTPTN chairman Wan Saiful Wan Jan said the body will conduct public consultations “focusing on loan repayment mechanisms” from which the public will be invited to say how best to collect the money owed.

“The repayment method for PTPTN has been discussed a lot and has been the focus since Pakatan Harapan became government,” Was Saiful was quoted as saying in The Star newspaper.

“It is still the focus as it has yet to be resolved.”

Wan Saiful said it will post results and discussion points recorded during discussions with stakeholders, including bankers, economists, parents and student groups, online.

These discussion took place from December 2018 until March 2019.

“There will also be townhall and roundtable sessions to discuss ideas,” said Wan Saiful.

Once all the feedback is collected, it will be forwarded to the Education Ministry for further scrutiny.

Among some of the proposals received were deferring loan repayments for those earning less than RM4,000 a month and a scheduled repayment scheme of between 2 per cent and 15 per cent of the borrower’s monthly income.

The target is to collect RM2 billion by year’s end.

“The minister of education will need to take it to the Cabinet for a final decision,” added Wan Saiful.

Since 1997, PTPTN has allocated RM56 billion to help more than three million students. As of December 31 of last year, PTPTN has loans amounting to RM20.7 billion from 1.9 million borrowers.

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