Restructure Your PTPTN Loan With Just RM300 Payment

Once you’ve finished your tertiary studies, one of the biggest responsibilities thrust upon you is for you to repay your student loans. For a lot of Malaysian students, that means repaying their PTPTN debts.

However, it has to be said that not every one is committed to paying off their student loans. According to reports, PTPTN had more than 2.7 million loans unpaid, totalling RM32 billion.

Why are PTPTN borrowers not repaying their loans?

According to a 2019 study done by PTPTN themselves, PTPTN loan non-payments is due to low incomes among graduates.

Under the terms of PTPTN’s  student loan, the repayment of the loan starts after 12 months from the end of the loan reimbursement period WITHOUT waiting for the Repayment Notice. If you start repayment within the 12 months, there will also be no administration fee (Ujrah) imposed.

However, for many borrowers, they will not start repaying until they find a job. The problem is further exacerbated when the starting salary is barely enough to cover their living costs. So, while the borrowers are not paying their loans due to their lower income, their arrears continue to build up. 

And when their income is high enough to repay their loans, they now have to clear up their arrears before they can start repaying their PTPTN loans. However, most of them will not have the amount of money needed to clear their arrears.

So what options do PTPTN borrowers have? The only thing they can do is restructure their loans.

Have you started receiving PTPTN repayment notices?

But before we can start talking about PTPTN loan restructuring, let’s discuss something equally as important, which is the PTPTN repayment notices.

If you have been defaulting on your PTPTN loans, you might have received repayment notices sent to you via your email. And although you might think this is something you can just ignore, it can carry with it some real consequences.

Here’s how it works;

Repayment notice – If you have been defaulting on your PTPTN loans, you will first be served with a repayment notice, asking you to settle your PTPTN debts.

First warning –This will be issued if the borrower does not respond within 30 days (1 month) from the date of the repayment notice being issued.

Second warning – This will be issued to the borrower if no payment is made and no response is received within 30 days (1 month) from the date of the first warning being issued.

If you continue to ignore the repayment notice after the second warning has been issued, then you might be served with court summons from PTPTN.

Hence, you should restructure your loans before you are served with a court summons.

How does restructuring your PTPTN loan work?

In the context of PTPTN loans, restructuring your loan is a way to make your loan more manageable. Restructuring your PTPTN loan can happen in multiple ways including;

• Extending the loan term: This option increases the duration over which the loan is repaid, thereby reducing the amount of monthly installments. This makes payments more affordable but increases the total amount paid in interest over time.
• Reduction in monthly installments: The borrower’s monthly payment is reduced to an affordable level, which may involve adjusting the loan term or other factors. This may help borrowers who are struggling to make the original monthly payments.
• Interest rate adjustment: In some cases, PTPTN may reduce the interest rate on the loan. This will make the overall debt cheaper to repay over time.
• Debt forgiveness / Partial reduction: There are instances where the loan balance may be partially written off. This is especially for graduates who have been paying their loans for a certain number of years or who meet specific criteria (e.g., those who have made consistent payments).
• Grace period extension: Some borrowers may request a grace period (e.g., after graduation or after a period of unemployment). This is to allow them time before they need to start repayments.

How do you restructure your PTPTN loan?

If you’re interested in restructuring your PTPTN loan, all you need to do is give PTPTN a call at this number, or you can head over to your nearest PTPTN office.

PTPTN is currently running a campaign where you can restructure your loan with payment as low as RM300!

Campaign period: 22 to 30 November 2024
How to start:
Download myPTPTN app from Google Play Store, or  Apple App Store.
Register, log in and apply for a consultation
Start restructuring your loan repayment

After restructuring, you can also opt for a direct debit or salary deduction to pay off your loans. This will make it easier for you to repay your loans as well.

Read More: PTPTN Loan Repayment Guide