More efficient PTPTN financing model in the pipeline, Dewan Rakyat told

The Star

The government is developing a more efficient and sustainable long-term model for National Higher Education Fund Corporation (PTPTN) financing.  Deputy Higher Education Minister Datuk Mustapha Sakmud informed Datuk Shamshulkahar Mohd Deli (BN-Jempol) during Minister's Question Time in the Dewan Rakyat on Tuesday (Oct 22) that this initiative involves collaboration between his ministry, the Finance Ministry's Madani Monitoring Unit, and PTPTN.  Read more at https://tinyurl.com/ms9c4h53  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

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00:00The model of PTPTN loan financing is dependent on the return payment as the main source.

00:07Funds circulate to ensure the balance of financing for the benefit of the borrower in the future.

00:15Any need or lack of funds for the purpose of PTPTN loan financing

00:20will be covered by funding through loans from local financial institutions

00:26or through the issuance of interest with employment guarantee.

00:31For your information,

00:33PTPTN has suspended the act of strengthening the return payment authority

00:39as well as restricting travel to non-payment borrowers since June 2018.

00:47Nevertheless, from time to time,

00:50PTPTN has taken steps to remind borrowers about the suspension of the return payment

00:58and their responsibility to make the return payment.

01:03In addition, PTPTN has also taken steps to provide certain incentives

01:08to encourage borrowers to make a return payment,

01:12such as allowing borrowers to make a restructuring

01:15or rescheduling of the repayment of loans according to their abilities.

01:23Currently, the Ministry and PTPTN are working closely with the Ministry of Finance

01:32to study and propose a more efficient and reliable new PTPTN financing model

01:40for the long term for the cost of state education.

02:10I have a lot of commitments, such as renting a house, buying a car,

02:20saving money for my wedding, and many other commitments.

02:25So, to sum up,

02:27what are the steps that the government is considering

02:31to help them repay their loans in the midst of an increasing cost of living,

02:38especially at this time?

02:41Thank you, Mr. Jempol, for the additional questions.

02:46For your information, this is no longer a priority for the government,

02:50especially the Ministry,

02:52to help our constituents to ensure that they can pay regularly.

03:01We are also considering how they can repay this loan.

03:08For example, the PTPTN borrowers are given a grace period of 12 months

03:14after they have completed their studies

03:16before they are required to start repaying their loans.

03:20After 12 months, if the borrower has not yet obtained a job or income,

03:27the borrower can make a request

03:29to postpone repaying their loans for up to a maximum of 2 years.

03:36If the borrower chooses to continue their studies,

03:40they are allowed to continue their studies to a higher level.

03:47The borrower is also allowed to postpone repaying their loans

03:51after they have completed their studies.

03:56And also, how can a borrower who has a job and income

04:01but is facing difficulties

04:03or unable to repay their loans,

04:05according to the schedule set by the PTPTN,

04:08to provide a brokerage network

04:10where the borrower can structure and schedule the repayment,

04:14as I mentioned earlier.

04:18So, the current mechanism is to provide as much space as possible

04:26for the borrower to structure their repayment schedule

04:31according to their capacity.

04:34My additional question is,

04:36does the KPT have a plan

04:39to re-study the need for repayment of PTPTN loans

04:45targeting the poor and B40 households,

04:49as promised earlier?

04:52And is there any action that will be taken

04:54by a failure borrower to repay their loans,

04:59such as asking for a new loan,

05:01credit card easiness,

05:03or buying a vehicle, and so on?

05:05Is there no political will from the ministry

05:09to remove Kira,

05:11as was done to the 83 million that were allocated to the North University?

05:18That's all.

05:19I think the PTPTN issue has been an issue for quite some time,

05:24and all parties have put it in their own manifestos,

05:29including the parties here and there.

05:32However, in the current situation,

05:35it is indeed quite difficult for us to remove it

05:41with such a big commitment.

05:46And we also have to think about it.

05:49If we want to remove those who haven't paid yet,

05:53we also have to think about those who have already paid.

05:56So, the commitment is more or less, if I'm not mistaken,

06:00in the 76 billion that have already been paid.

06:05So, we need this fund to roll it out,

06:09to finance the education of the students after this.

06:15So, so far, the Ministry of Labor is still

06:21As I said earlier, we are studying the best model of financing

06:28according to the performance of state finance.

06:31That's all. Thank you.

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