PETALING JAYA: National Higher Education Fund Corporation (PTPTN) borrowers, who have been making regular repayments, say the 10% discount announced under Budget 2027 will encourage them to settle their loans sooner.
Subanan Gajendran, 26, said he had expected stricter repayment measures following the Higher Education Ministry’s announcement on Oct 6 that PTPTN was working with government agencies and corporations to improve loan collection, as arrears owed by 1.16 million borrowers stood at RM10.7bil.
“I assumed this would’ve inconvenienced PTPTN and therefore they wouldn’t be pushing for the PTPTN loan repayment discount initiative under Budget 2027.
“But luckily there was some discount and I hope this would encourage the defaulters to start paying up.”
Subanan, who has been diligently paying his PTPTN loan instalments after graduating, said he was grateful for the discount.
He was commenting on the announcement under Budget 2027 yesterday that borrowers with no arrears who make regular repayments would be eligible for the discount.
Michelle Nandini Ronald Alfred, 28, said she planned to make additional repayments to take advantage of the discount and reduce her outstanding loan balance.
“I want to be able to benefit from the opportunity and save more for the future, free of my student debt.”
Mandy Lim Yie Zhen, 26, who subscribes to the PTPTN auto salary deduction service, said she was grateful for the discount, which would help her settle her loan sooner.
Apart from the discount, the government will grant a repayment moratorium to borrowers earning up to RM2,500 a month, while those earning between RM2,500 and RM3,000 will be required to make minimum monthly repayments of RM50.
The measures are expected to benefit more than 400,000 PTPTN borrowers.
Separately, those who make cash donations to the School Public Contribution Fund or public universities will qualify for tax deductions of up to 10% of aggregate income.
Commenting on this, Dr Ismi Arif Ismail, a professor at the Faculty of Educational Studies and the Institute of Social Science Studies at Universiti Putra Malaysia, said the tax incentives could encourage more individuals and organisations to support education.
However, he cautioned that community contributions must complement, not replace, the government’s responsibility to ensure equitable and adequate public funding.
“Schools in affluent communities may have stronger fundraising networks, while rural, remote and disadvantaged schools may struggle to attract comparable contributions,” he said, stressing the need for transparent financial reporting, clear accountability and safeguards to ensure donations are used appropriately.
He added that tax incentives could encourage alumni to reconnect with public universities, which need additional resources to support research, scholarships, student welfare, innovation, entrepreneurship and industry collaboration.
