EPF to pay off PTPTN loans surges

KUALA LUMPUR - The number Malaysians using retirement savings to repay study loans in the first four months of 2016 exceeded the entirety of those who did so last year, Parliament was told today.

According to reply by the Finance Ministry, 33,824 people applied to use RM 235.7 million of their Employee Provident Fund (EPF) savings to pay down their National Higher Education Fund Corp (PTPTN) loans between January and April.

This easily surpassed the 26,568 applications worth RM209 million in all of 2015.

"Payment is made either directly back to member (applicant) or the institution," the ministry said.

The ministry was responding to a question from Ahmad Lai Bujang (BN-Sibuti) who had asked for figures of those who withdrawing from their Account II savings in EPF to settle PTPTN debts.

PTPTN is reportedly still owed over RM 13 billion in arrears.