KUALA LUMPUR: The amount of student loans owed to the National Higher Education Fund (PTPTN) is almost equivalent to the total debts suffered by the scandal-riddled 1Malaysia Development Bhd (1MDB), said Tun Dr Mahathir Mohamad.
The Prime Minister said PTPTN defaulters owed RM39bil in outstanding repayments.
“It’s about the same (amount) as the money lost through 1MDB.
“That’s how much money that has not been paid to the Government for what it spent on education and therefore opportunities for a better job and income,” he said in his speech during the Malaysian Student Leaders’ Summit here yesterday.
For the general election on May 9, Pakatan Harapan promised in its manifesto to postpone the repayment of PTPTN loan to graduates whose salaries were below RM4,000 a month and to abolish the blacklisting policy.
However, on May 31, Education Minister Dr Maszlee Malik announced that borrowers who fall within this income group would have to continue paying their loans until the Government works out a way to fulfil its manifesto pledge.
He said the Government had to defer the promise due to the debt situation left behind by the previous administration.
On June 26, PTPTN chairman Wan Saiful Wan Jan announced that all 429,945 loan defaulters were removed from the travel blacklist but they must continue to service their education loans.
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