#Budget2019: New PTPTN Initiatives Will See Monthly Deductions Of 2% To 15% From Salary
The government has also waived loans of those aged 60 years and above.
By Alyssa J. Oon — 02 Nov 2018, 07:00 PM
Finance Minister Lim Guan Eng has announced new repayment schemes for National Higher Education Fund (PTPTN) borrowers
The initiatives were announced during the tabling of Pakatan Harapan's first-ever budget.
Repayment of loans will be ensured through scheduled deductions of between 2% to 15% from the borrower's salary
The percentage will be determined based on the borrower's monthly income.
Additionally, it will only apply to those who are earning RM1,000 per month and above.
Lim also said that a tax break will be given to companies who help their employees repay PTPTN loans
However, the tax break only applies to loans that are settled by the end of 2019.
The government has also waived remaining loans for borrowers aged 60 years and above with an income of less than RM4,000 a month
The move will benefit 350 borrowers and will cost the government RM4.2 million.
Additionally, individual income tax breaks for the National Education Saving Scheme (SSPN) have been increased
The new rate stands at RM8,000, an increase from the previous RM6,000.
SSPN is a savings scheme that was set up by PTPTN for the purpose of furthering education without depending on loans.