Beginning next month, the National Higher Education Fund Corporation (PTPTN) will deduct the salary of civil servants with outstanding loans.

Its chief executive officer, Agos Cholan said this would involve 163,007 civil servants who never made payments or were inconsistent in paying back PTPTN loans.

"In accordance with the statement issued by Public Service Department director-general Tan Sri Mohamad Zabidi Zainal, PTPTN will start deducting the salary of civil servants at the end of September.

"PTPTN has also documented the civil servants concerned and will conduct briefings before the deduction is made," he told reporters after a PTPTN event here on Saturday.

The meeting with the civil servants was to determine the reason why the loans were not paid and to negotiate payment in monthly installments.

Some 480 civil servants, including 136 from the management and professional group will be the first group to have their salaries deducted, beginning next month.

PTPTN has also targeted the National Education Savings Scheme (SSPN-i) to reach RM2 billion by 2020.
SSPN-i has 2.3 million depositors and savings amounting to RM1 billion.