Dewan Rakyat was told today that PTPTN has increased the salary threshold for borrower from RM1,000 to RM2,000. The news was announced on Tuesday as a result from a cabinet meeting last Friday. This new salary requirement will be effective from January 2019.
According to Education Minister Dr Maszlee Malik, the deduction will be 2% or RM40 for borrowers whose salaries reached RM2,000.
He was further quoted saying to reporters:
What we can do at this time is to place RM2,000 as a threshold for the start of repayment and then increase it based on the borrower’s income. The Cabinet also agreed to exempt loan repayments for those who received a first class honours degree from the M40 group. The original proposal was only for those from the B40 (bottom 40%) income group.
Deputy Education Minister Teo Nie Ching said that as of October, 53,113 borrowers who had obtained first-class honours were exempted from repaying their loans.
He was saying that PTPTN will not extend this to part-time students. He also said that the total amount repaid so far was RM817.75 million, while the total amount of unpaid loan is RM39 billion.
The change in policy in the recent budget was mostly due to protest by students from various universities against the loan repayment schedule in the budget.