On a call to abolish the administrative costs for National Higher Education Fund Corporation (PTPTN) loans and for them to be disbursed without any charges, interest or fees, Mustapa explained that the Employees Provident Fund was providing loans to PTPTN at 5%.

Out of this, he said students had to pay an administrative cost of 3% (as part of their loan repayments) with the Government subsidising the remaining 2%.

“This costs the Government RM300mil per annum. Many may hope the Government can provide free tertiary education for all but it is getting more expensive,” he said.

He said the Government was already subsidising 88% of the total cost of studying in public universities, adding that students paid the remaining 12%.

PTPTN now had about one million borrowers, he said, adding the number would increase to between one-and-a-half million to two million in five years.

Articles Source : The Star