PTPTN financing for IPTA students cut by 5%, and 15% for IPTS

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KUALA LUMPUR: The National Higher Education Fund Corp’s (PTPTN) new total financing for students of public institutions of higher learning (IPTA) has been reduced by 5%, and 15% for students in private institutions of higher learning (IPTS), beginning Nov 1. Marketing and Strategic Communication chief officer, Mastura Mohd Khalid, said the total financing for IPTS students taking a bachelor’s degree in medicine, however, will be maintained due to the high fees.

She said the rationalisation was made as a result of funding constraints for PTPTN to accommodate an increase of 50,000 new borrowers to pursue studies at IPTS and IPTA beginning this month.

One of the reasons for this is the reluctance of PTPTN borrowers to repay their loans after completing their studies, she told Bernama yesterday, adding that IPTA and IPTS nationwide had been told of the rationalisation via a circular on Oct 29.

Mastura also said PTPTN used the data for recipients of the 1Malaysia People’s Aid (BR1M) to determine the total financing for new borrowers. “If ... borrowers or [their] parents are listed as BR1M recipients, they will receive maximum PTPTN financing.

“For the non-BR1M recipients, 75% financing will be given to families with an income of not more than RM8,000 and 50% for students from family with a household income of more than RM8,000,” she said.

She said in an effort to ensure sustainability of PTPTN, various programmes have been organised,  including awareness campaigns and providing repayment incentives to borrowers. — Bernama

This article first appeared in The Edge Financial Daily, on November 4, 2014.