RM31.61 million for students to enrol in universities

The National Higher Education Fund Corporation (PTPTN) handed RM31.61 million to public university students across the country to facilitate the enrolment and application process into universities through the advance financing body (WPP).

A total of RM3.3 million was handed to 2,202 students in Perak according to Datuk Shamsul Nasarah, the Chairman of the body. This advance payment is meant for students seeking undergraduate admission in public universities for the September 2016 session to lessen the burden on families and parents in terms of providing the basic needs for the children.

Parents and students are advised to take advantage of the payment and utilise it for the purpose it’s meant to serve and not for other purposes.

Shamsul Anuar says a total of RM1.21 billion WPP warrants were cashed by 821,713 students nationwide as of August 9, 2016. He also asked the parents, especially Bumiputera parents to inculcate the savings to reduce dependency on PTPTN loans.

PTPTN has given RM14.65 billion and only 45% have been repaid as of 2015 according to Zairil Khir Johari, MP for Bukit Bendera and DAP Parliamentary Spokesperson for Education, Science and Technology. Mr Zailil reported these numbers in Free Malaysia Today.

Earlier this year, 1.25 million borrowers have been blacklisted by the Central Credit Reference Information System (CCRIS) due to failure to repay the student loan to PTPTN.

In 2014, PTPTN announced that the amount of loan would be reduced by 5% for students of public institutions of higher education and 15% reduction for private institutions. PTPTN also introduced new requirements where students from low income families whose parents received the 1Malaysia People’s Aid (BR1M) are eligible for a full education loan. Students from families with a monthly income of less than RM8,000 receive 75% of the total amount of the loan, and students from families with a monthly income exceeding RM8,000 will receive 50% of the loan.

Subsequently, in 2015, PTPTN reduced the number of students receiving the loan from 180,000 to 102,000 students. Additionally, the requirements had to be reviewed accordingly. Under the revised requirements, more students will receive 75% of the total loan.