KUALA LUMPUR, Oct 9 (Bernama) -- The deferment of National Higher Education Fund Corporation (PTPTN) loan repayments for borrowers earning less than RM2,500 a month under Budget 2027 will help stabilise graduates’ financial positions in the early stages of their careers, said Deputy Higher Education Minister Adam Adli Abd Halim.
He said the income-based repayment scheme reflected the government’s concern for the financial capacity of young people who had just entered the workforce.
“This measure fulfils what we have been advocating all this while, namely the deferment of repayments based on graduates’ affordability and income levels. This will help ensure that we can strengthen the financial standing of every graduate at the start of their careers,” he said.
The Hang Tuah Jaya Member of Parliament was speaking to reporters after the tabling of Budget 2027 by Prime Minister Datuk Seri Anwar Ibrahim in the Dewan Rakyat today.
Earlier, Anwar also announced that borrowers earning between RM2,500 and RM3,000 a month would only be required to make a minimum repayment of RM50, while employers who make PTPTN loan repayments on behalf of their employees would be eligible for tax deductions. The incentive covers payments made from Jan 1, 2027 to Dec 31, 2028.
Apart from adjusting repayment schemes according to salaries, Adam Adli said the 10 per cent discount for borrowers who make regular, scheduled payments was a new incentive, differing from previous arrangements which generally required borrowers to settle their outstanding balances in a lump sum.
On the allocation for the higher education sector under Budget 2027, he said it had increased from RM18 billion to more than RM19 billion, covering operating and development expenditure, including projects to upgrade residential colleges at public universities.
“This focus is important to ensure that we can increase university admission capacity and enable students to continue their studies comfortably,” he said.
-- BERNAMA