In making the decision yesterday, the cabinet decided that effective June 1, the new rate would be extended to borrowers for all undergraduate and postgraduate studies.
They include all future and existing borrowers as well as those servicing their loans following the completion of their studies.
Students applying for loans before the new system is implemented will have their applications processed and approved according to existing rates and an adjustment will be made later when the new system is developed by December.
Previously, the administration fee for PTPTN undergraduate borrowers was three per cent while the charges for postgraduate study loans were fixed at five per cent.
Higher Education Minister Datuk Seri Mohamed Khaled Nordin said the National Fatwa Council, which was consulted on the matter, was agreeable with the decision.
In line with the change, Khaled said new agreements would be issued to all borrowers by early next year. They will then have one month to complete the new agreement and return them to PTPTN.
"If a borrower fails to do this, he will continue to service his loan under the old rate."
News From NST : http://www.nst.com.my/Current_News/NST/Thursday/National/2320921/Article/index_html