Monday, April 11, 2011

PTPTN urged to do away with 1% interest rate, blacklisting

KUALA LUMPUR: Umno Youth has proposed that the National Higher Education Fund Corporation (PTPTN) do away with the 1% interest rate for its loans.

Movement chief Khairy Jamaluddin said the 1% interest rate meant for PTPTN's administration fee collected was actually a lot more than the actual operating expenditure of the corporation.

"We were told that it only cost PTPTN RM65mil a year to operate and to pay its overheads, so the 1% interest rate from the billions given out every year is far more than needed.

"We hope that the PTPTN borrowers will not be saddled with extra debt and only pay their principal loans," he said when closing a roundtable meeting on the issue here Wednesday.


More: http://thestar.com.my/