KUALA LUMPUR: Borrowers of the National Higher Education Fund Corporation (PTPTN) who earn less than RM2,500 monthly will not need to make repayments until their income increases under Budget 2027.
The government agreed to defer repayments for this group, while those earning RM2,500 to RM3,000 pay at least RM50 a month, said Prime Minister Datuk Seri Anwar Ibrahim.
"This means borrowers earning less than RM2,500 a month will not be required to make any repayments to PTPTN. Only when their salaries rise to between RM2,500 and RM3,000 will they be asked to pay RM50 a month.
"This will benefit more than 400,000 PTPTN borrowers. I believe this will not be an issue because if they cannot afford to repay their loans, they do not have to pay. Once they can afford to do so, they can pay RM50 a month," he said when tabling Budget 2027 in the Dewan Rakyat on Friday (Oct 9).
Anwar, who is also the Finance Minister, said borrowers with no outstanding arrears who make regular repayments will receive a 10% discount.
He said the government had also agreed to offer tax deductions to employers who repay PTPTN loans on behalf of their employees.
The tax incentive will apply to repayments made between Jan 1, 2027, and Dec 31, 2028, he added. - Bernama
