Jakarta:The deferment of National Higher Education Fund Corporation (PTPTN) loan repayments for borrowers earning less than RM2,500 a month under Budget 2027 is designed to help stabilize the financial positions of graduates in the early stages of their careers, as stated by Deputy Higher Education Minister Adam Adli Abd Halim.

According to BERNAMA News Agency, Adam Adli emphasized that the income-based repayment scheme reflects the government's concern for the financial capacity of young people entering the workforce. He highlighted that this measure aligns with the government's longstanding advocacy for repayment deferments based on graduates' affordability and income levels to strengthen their financial footing early in their careers.

Speaking to reporters after Prime Minister Datuk Seri Anwar Ibrahim presented Budget 2027 in the Dewan Rakyat, Adam Adli noted that the budget includes provisions beyond deferments. Borrowers earning between RM2,500 and RM3,000 a month will only need to make a minimum repayment of RM50, and employers who repay PTPTN loans on behalf of their employees will qualify for tax deductions. This incentive applies to payments made from January 1, 2027, to December 31, 2028.

Additionally, he mentioned a new incentive offering a 10 percent discount for borrowers who make regular, scheduled payments, differing from previous policies that typically required lump-sum settlements of outstanding balances.

Regarding the higher education sector's allocation in Budget 2027, Adam Adli pointed out an increase from RM18 billion to over RM19 billion. This budget increase supports both operating and development expenditures, including projects aimed at upgrading residential colleges at public universities, which is essential to enhance university admission capacity and ensure students can pursue their studies comfortably.