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09 April 2015

What is PTPTN Income Contingent Loan ?


Most of the Malaysian who study local universities will borrow from the National Higher Education Fund Corporation (PTPTN). Meaning all of those undergraduates are actually indebted when they further their tertiary studies. Well, this is consider a good debt instead if you finished your study and get a good job to repay back the loan later.



However, statistic shows that many of those graduates defaulted their PTPTN loan after graduating from universities. Few years back, government even reduces the loan interest from 3% to 1% p.a. but yet still no improvement. How about 20% discount if you settled off your loan in one lump sum?



Still not enough...

Another good news to PTPTN loan borrowers, government is introducing the new repayment term called "Income Contingent Loan", which allows borrowers to delay their repayments until they reach a certain level of income. Currently, loan borrowers have to start their repayments 6 months after finishing their study.

How much is the income threshold ?
This is the most crucial question after the announcement. So far, we still don't have the answer yet. And, this will definitely benefiting those low income graduates.

Anyway, there are more queries such as below:
  • Would it be RM3,000 monthly income threshold ?
  • Would it affecting the existing loan borrowers ?
  • How about the schedule of repayments?

1 comment:

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