KUALA LUMPUR: The government is introducing a scheduled repayable payroll between two per cent to 15 per cent of loan borrowers’ monthly income to ensure that the National Higher Education Corporation (PTPTN) remains sustainable.
Finance Minister Lim Guan Eng said the repayment schedule initiatives are dependent on the borrower's income level, and only applicable to borrowers earning more than RM1,000 a month.
He said in order to encourage repayment by borrowers, tax relief would be provided to companies that assist in settling the remaining employee loans for the year ending 2019.
"Individual income tax relief services for the National Education Savings Scheme (SSPN) has increased from RM6,000 to RM8,000.
"Loan disbursement to students from B40 households with first-class results, writing off debt balance to lenders aged 60 years and above, and those earning less than RM4,000 a month, will benefit 350 borrowers with a cost of RM4.2 million," he said.
In an immediate response, Malaysian Institute of Higher Education Research Development Policy (PenDaPaT) member Prof Dr Russayani Ismail said the payment by salary deduction of two to 15 per cent from borrowers’ income will not be a burden on graduates.
“PTPTN’s decision in using the 'income contingent loan' method or income-based payment is a wise move and takes into account the well-being of the borrowers.
“It is also a more efficient repayment method. The RM1,000 monthly revenue is also a practical figure for PTPTN's borrowers.
“The amount of RM1,000 is close to the RM1,400 figure obtained through a study on transforming the financing of Malaysia's 2012 higher education funded by PTPTN. This proposal is based on empirical analysis rather than perceptions or emotions,” said Russayani, who is also a professor at the Department of Economics, Finance and Banking, Universiti Utara Malaysia.
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