PTPTN gets RM1.5bil loan for students

PETALING JAYA: The National Higher Education Fund Corporation (PTPTN) has obtained a loan from a local banking group to continue financing students.

CIMB Group signed an agreement to extend a RM1.5bil Islamic financing facility to PTPTN yesterday in the latter’s efforts to reduce reliance on government funding.

“Our Prime Minister has emphasised on the quality of education and increasing access to education, which would be meaningless if students are hindered from furthering their education because they cannot afford to pay,” said Higher Education Minister Datuk Seri Mohamed Khaled Nordin.

“We target 40% of our population aged 17 to 23 to be educated at the tertiary level. At the moment, we have achieved 38%, which is better than most countries,” he said.

He said he hoped students would appreciate the Government’s efforts and fulfil their responsibilities to repay their loans so PTPTN can extend loans to others.

PTPTN chairman Datuk Dr Mohamad Shahrum Osman said RM4.2bil is needed this year to give out loans to over 500,000 students who are still receiving loans and whose applications have been approved.

Since the PTPTN’s establishment in 1997, it has received RM5.3bil from the Government and borrowed RM13bil from the Pension Trust Fund Council (KWAP) and Employees Provident Fund to finance education loans.

He said that up to May this year, the total amount of loans approved to students in public and private higher institutions amounted to RM27.4bil, of which RM1.2bil has been repaid.