The loan amount allocation for the PTPTN (Perbadanan Tabung Pendidikan Tinggi Nasional) will not be reduced even during this trying times and difficult year.
The promise was made by the Higher Education Minister, Datuk Seri Mohamed Khalid Nordin, who wants to see the RM2.6 billion allocation benefiting its recipients, which can be up to 200,000 students this year.
The PTPTN was established under the government initiative in 1997 to give access to students pursuing higher education in universities, polytechnics, community colleges and so on for financial loans and assistance. As a pre-requisite, students need to pass SPM, but the criterion is flexed for students who show good record in other secondary and tertiary studies.
Students who receive education funding through the PTPTN can repay back the loan through an installment scheme agreeable between the two parties signing the agreement.
Repayment of education loan has been an issue synonym with PTPTN in recent years, with many efforts being done to reduce the endemic problem. In 2008, more than 18,000 PTPTN loan defaulters were taken to court for legal actions. At the moment, a study is on the way to access the viability of payment through mandatory salary reduction.
Since its inception, more than 1 million students have benefited from the PTPTN loan, amounting to a total of over RM20 billion in disbursements.