Thursday, August 14, 2008


PTPTN service charge down to one per cent


The Cabinet yesterday agreed to reduce the service charge for study loans given by the National Higher Education Fund Corporation (PTPTN) to one per cent for all university students effective June this year, Higher Education Minister Datuk Seri Mohamed Khaled Nordin announced yesterday. He said the decision involved existing borrowers as well as those who had completed their studies but had yet to settle their loans, and Iliture borrowers. “Students applying for loans before the new system is implemented will have their applications processed and approved according to existing rates and an adjustment will be made later when the new system is developed by December this year,” he told reporters here. Mohamed Khaled said borrowers who had never paid back their loans would be charged the old rate and a fine of one per cent would be imposed, only the balance of the loan after June 1 would be charged the new rate. The PTPTN service charge earlier was three per cent for first degree courses and five per cent for postgraduate courses. He said the new agreement letters would be circulated to existing borrowers and those who had completed their studies by next year and borrowers would be given one month to fill up the new documents and return them to the PTPTN. “The borrowers must respond to the letter of offer regardless whether they agree to it or not, this is necessary as it involves an agreement, the (borrowers) cannot assume that when we announce, it will change (automatically) because there is at agreement. “If the borrower does not give any response, the old rate would be maintained,” lie said. Mohamed K haled said it was hope that the reduction in the service charge would enable efforts to get borrowers to settle their loan to be enhanced and borrowers would no longer have any excuse for failing to repay their loans. Currently, there are 1.04 million borrowers (diploma and first degree students) of the P’I’PTN loans while the number of post-graduate students stood at 2,437. - Bernama

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