KUALA LUMPUR: The moratorium on repayment of National Higher Education Fund Corporation (PTPTN) loans has been extended to December, the higher education ministry announced.
Its minister Noraini Ahmad told the Dewan Rakyat that it will cost the government an estimated RM375 million in loan deferment.
The suspension of monthly repayments, which began on March 19, was initially scheduled to end on Sept 30.
The deferment is expected to benefit some 1.5 million borrowers.
Noraini said the extension would automatically be given to PTPTN borrowers and there was no need to apply for it.
However, those who wish to continue servicing their loans could do so online.
“We hope the extension would be able to lessen the burden of PTPTN borrowers,” she said when winding up for her ministry during the debate on the royal address today.
Noraini also said the government will introduce several initiatives to help borrowers secure jobs, including a joint effort with Socso called “Virtual Mini Job Hunt for PTPTN Borrowers”.
“This would enable them to repay their loans,” she said.
She said PTPTN was also open to restructuring loans until the borrower reached the age of 60 and suspending repayments for up to 24 months.
Meanwhile, PTPTN chairman Wan Saiful Wan Jan welcomed the moratorium extension, saying it was vital as many borrowers were effected by the Covid-19 pandemic.
“This was why the extension was proposed,” he said in a brief statement.