PTPTN: All You Need To Know About The Scheduled Salary Deduction (PGB) Scheme

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PTPTN: All You Need To Know About The Scheduled Salary Deduction (PGB) Scheme

You can run, but you can't hide.

If you've been avoiding repaying your National Higher Education Fund Corporation (PTPTN) loan, there's some really bad news for you.

Starting January 2019, the scheduled salary deduction (PGB) will take effect, and PTPTN borrowers will see a certain percentage automatically deducted from their salary every month.

According to PTPTN chairman Wan Saiful Wan Jan, the scheme will be similar to the Inland Revenue Board's (IRB) monthly tax deduction (PCB) system, in which PTPTN will get in touch with employers so that they can carry out the deductions according to the set percentage.

No running away now.
Wan Saiful told The New Straits Times that to ensure that the PGB scheme goes on smoothly, PTPTN will work together with other agencies such as the IRB, the Employees' Provident Fund (EPF), the Retirement Fund Inc (KWAP) and the Immigration Department to obtain borrowers' salary information.

"Based on the information, PTPTN will issue a directive for employers to deduct salaries according to the percentage set.

"Employers will be responsible for deducting the salaries of their staff (borrowers) for the purpose of PTPTN loan repayment," he was quoted as saying.

So, how much do I have to pay?

Depending on much you're earning.

Under the PGB scheme, PTPTN borrowers can expect to see an automatic deduction of between two to 15 percent from their monthly salaries. So, the more you earn, the more it will be deducted.

However, this scheme is only applicable to those who earn RM2,000 and above. Those who are earning less than RM2,000 monthly will be exempted from repayment...for now!

Here's the percentage of deduction for your easy reference:
 
MONTHLY SALARY PERCENTAGE
RM2,000 and below 0 per cent
RM2,001 to RM2,499 2 per cent (RM40-49.99)
RM2,500 to RM2,999 3 per cent (RM75-89.99)
RM3,000 to RM3,999 5 per cent (RM150-199.99)
RM4,000 to RM5,999  8 per cent (RM320-479.99)
RM6,000 to RM7,999 10 per cent (RM600-799.99)
RM8,000 and above 15 per cent (RM1,200 and above)

How do I get exempted from repayment?

Like we mentioned above, those earning less than RM2,000 will be exempted from the PGB scheme. 

If you fulfil these criteria, you will also be exempted from repaying your PTPTN loans:
  1. Obtained First Class honours: Students who complete their studies in 2019 and obtained First Class honours are eligible for exemption. However, they must be full-time students and are from B40 or M40 households at the time of their graduation. 
  2. Above 60 years old: Senior citizens who are earning between RM2,000 to RM4,000 a month will also be exempted from repayment, provided if they have been consistent in paying back their loans for three years before they turn 60 years old.

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