KUALA LUMPUR: National Higher Education Fund Corporation (PTPTN) borrowers welcome the recently announced discount incentives for loan repayments as a great opportunity for working adults to settle their debts.
Food purveyor Zulaika Suliman, 27, said working adults with a fixed income should take advantage of this initiative.
"The discounts for loan repayments are welcome news for PTPTN borrowers who have stable employment.
"They should make use of the 10 per cent discount for repayment via salary deduction or direct debit on a predetermined schedule to create a consistent payback schedule," she told the New Straits Times.
Zulaika said the discounts would encourage borrowers who lost their jobs or have had their income cut due to the Covid-19 pandemic to continue with their scheduled repayments.
"The pandemic has thrown many people out of jobs. Many who managed to retain them either had to endure pay cuts or unpaid overtime. Borrowers who previously adhered to their repayment schedule might defer their payments due to these issues.
"Suppose they opt to defer the loan payments, they will start accumulating arrears which will eventually discourage them from making consistent payments.
"The discounts can ease their financial burden and enable them to cope with their scheduled payments while they secure a new job," said Zulaika.
At the tabling of the 2022 Budget recently, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz announced three forms of discounts to encourage and facilitate loan repayment for PTPTN borrowers.
Borrowers who make a full settlement will get a 15 per cent discount on their outstanding balance.
Those who settle at least half of their remaining debt in a single payment will be given a 12 per cent discount.
Meanwhile, borrowers who opt to repay through salary deduction or direct debit on a predetermined schedule will benefit from a 10 per cent discount.
Teacher Siti Normadihah Muhammad, 27, said working adults with adequate Employees Provident Fund (EPF) savings could consider withdrawing a portion of their savings to pay off their loans during the discount period.
"Many working adults with stable and consistent EPF contribution can withdraw their savings to make either a full or partial settlement of their PTPTN loans.
"Settling it in full will lift a heavy burden off the borrowers' shoulders. Meanwhile, people who opt for partial repayment will find it easier to stick to a monthly repayment schedule to settle the remaining debt," she said.
For more information, visit www.ptptn.gov.my.
