'Deferment subject to income verification'

THE deferment of National Higher Education Fund Corp (PTPTN) loan repayments for eligible borrowers, announced under the 2027 Budget, will be subject to income verification through cross-checks with the Inland Revenue Board.

PTPTN chairman Datuk Seri Norliza Abdul Rahim said yesterday the initiative was expected to benefit more than 400,000 borrowers earning less than RM2,500 a month.

"This initiative ensures that repayment commitments are aligned with borrowers' financial capacity."

Last Friday, Prime Minister Datuk Seri Anwar Ibrahim, who is also finance minister, announced that the government had agreed to defer loan repayments for PTPTN borrowers earning less than RM2,500 a month.

He also said borrowers earning between RM2,500 and RM3,000 would only have to make minimum monthly repayments of RM50.

Borrowers with no outstanding arrears who make regular repayments will also get a 10 per cent discount from next year.

Norliza said the discount was to reward borrowers who consistently met their repayment obligations.

"This is to encourage consistent repayments while also reducing the risk of loan arrears."

She said employers who repaid PTPTN loans on behalf of their employees would also be eligible for tax deductions on payments made from January 2027 to December 2028.