PTPTN wants EPF to allow withdrawals for study loan repayment

Justin Ong
Wan Saiful said many borrowers were genuine in their desire to repay their study loans, but simply lacked the financial means. — Picture by Zuraneeza Zulkifli

KUALA LUMPUR, July 19 — The National Higher Education Corporation will seek the Employees Provident Fund’s (EPF) cooperation for contributors to dip into their retirement savings to repay their student loans.

PTPTN chairman Wan Saiful Wan Jan said he will present the proposal to Finance Minister Lim Guan Eng’s consideration soon.

“The PTPTN fully supports public calls for PTPTN loans to be repaid using EPF funds,” he said in a statement last night.

Wan Saiful said many borrowers were genuine in their desire to repay their study loans, but simply lacked the financial means.

His agency confirmed this week that it was deferring repayments for all borrowers earning below RM4,000 monthly on the condition that they furnish proof of income to the PTPTN.

“For the moment, EPF withdrawal facilities to repay student loans including PTPTN loans are beyond the purview of the PTPTN,” he said.

Wan Saiful added that the EPF has full authority to manage the withdrawal of funds, and currently limits using retirement savings to offset such loans only to those who are no longer employed.