The government has extended the repayment moratorium of National Higher Education Fund Corporation (PTPTN) loans until December this year.

Free Malaysia Today quoted Higher Education Minister Noraini Ahmad telling the Parliament today that the move, which is expected to benefit some 1.5 million borrowers, will cost the government an estimated RM375 million in repayments.

The suspension of PTPTN monthly repayments began in March and was supposed to last until June 30, 2020.

However, it was later extended further for three months, until September 30, under the Economic Stimulus Package announced by Prime Minister Muhyiddin Yassin to assist those affected by the COVID-19 pandemic.

According to Noraini, the repayment moratorium will apply automatically to all borrowers.

However, borrowers who want to resume their repayments from October onwards can do so via online payments, she added.

"The government is aware of the hardship faced by some PTPTN borrowers, after losing jobs and their income during the COVID-19 pandemic.

"I hope this announcement will help alleviate their suffering."

She also noted the government's initiative such as the "Virtual Mini Job Hunt for PTPTN Borrowers" online scheme carried out in collaboration with the Social Security Organisation (Socso) which allows the hiring of those who lost their jobs during the pandemic.

Source: Free Malaysia Today
Photo source: Astro Awani