KUALA LUMPUR (Oct 7): National Higher Education Fund Corporation (PTPTN) study loan borrowers get a 20% discount off their outstanding loan balance upon full settlement beginning Nov 1, 2022 until April 30, 2023.

Meanwhile, those who pay off at least 50% of their remaining debt in a single payment or opt for salary deduction or scheduled direct debit in the period will also get a 15% discount on their remaining debt.

This was announced by Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz during the Budget 2023 presentation in Parliament on Friday (Oct 7).

According to PTPTN’s Strategic Plan 2021-2025 report’s latest available data, the federal statutory body said as of end-December 2020, a total of 2.1 million borrowers should have repaid loans amounting to RM24.3 billion.

30.3% have fully settled their repayment, 10.3% are actively servicing loans based on the predetermined schedule, 41.3% are inconsistent paymasters, while 18.1% or 383,907 borrowers are categorised as defaulters amounting to a debt of RM4.6 billion.

Meanwhile, the government plans to extend individual income tax relief up to RM8,000 until 2024 for net annual savings in the National Education Savings Scheme (SSPN), Tengku Zafrul said.

Besides student debt reductions assistance, Tengku Zafrul also announced that youth aged 18 to 20 years and full-time students aged 21 years and above also get e-wallet credit amounting to RM200, with an allocation of RM400 million.

Additionally, the provision of a RM30 monthly prepaid package across three months for the youth with internet data plan subscription is extended until April 2023.

Get our comprehensive coverage of Budget 2023 here.