PTPTN loan repayment deferment for 400,000 borrowers subject to income checks
KUALA LUMPUR: The deferment of National Higher Education Fund Corporation (PTPTN) loan repayments for eligible borrowers, announced under the 2027 Budget, will be subject to income verification through cross-checks with the Inland Revenue Board.
The Malaysian government has announced a deferment of National Higher Education Fund Corporation (PTPTN) loan repayments for over 400,000 borrowers earning less than RM2,500 per month, as part of the 2027 Budget initiative. This decision aims to ensure loan repayments align with borrowers' financial capabilities, according to PTPTN chairman Datuk Seri Norliza Abdul Rahim.
Borrowers earning between RM2,500 and RM3,000 a month will only need to make minimum monthly repayments of RM50. Furthermore, borrowers without outstanding arrears who make regular repayments will receive a 10% discount from 2027. The government also plans to offer tax deductions to employers who repay PTPTN loans on behalf of their employees for payments between January 2027 and December 2028.
This move is expected to encourage more employers to support their employees' debt burden, ultimately reducing the risk of loan arrears. PTPTN, under the Higher Education Ministry, remains committed to realizing the government's objectives by expanding access to inclusive education, improving borrowers' well-being, and ensuring education financing sustainability. The initiative seeks to help more young people pursue higher education and build their future.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
