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PTPTN

New automatic salary deduction formula to pay off PTPTN loan

Published by Afterschool.my on Apr 10, 2015, 10:25 am

The method of repayment for PTPTN will be simplified through a fixed percentage formula of the borrower's monthly income, which will be introduced in the near future.

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PTPTN chairman, Datuk Shamsul Anuar Nasarah, said they are currently in discussions with the parties concerned for matters covering legal aspects, appropriate mechanisms and fine-tuning the cases and situation of PTPTN borrowers.

"The borrower must pay PTPTN back when they achieve a certain amount of income. This is because a refund will be deducted automatically from the salary of the borrower when they reach a specified level.

The introduction of the new formula will hopefully shorten the debt settlement period compared to the existing methods.

"This method of repayment of higher education funding scheme has been implemented in several other countries including Australia and New Zealand," he said.

He foresees the PTPTN loan repayment will be more stable and have a positive impact on the borrower and the sustainability of higher education in the future.

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