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KUALA LUMPUR - The outstanding arrears in repayments of loans from the National Higher Education Fund Corporation (PTPTN) amounted to RM10.7 billion involving 1.16 million borrowers as at Aug 31, according to the Ministry of Higher Education (MOHE).
In a written reply published on the Parliament website, MOHE said various initiatives had been and would be undertaken, including strengthening loan management by improving the terms and conditions of loans to better target those in need based on PTPTN’s financial capacity.
"In addition, the effectiveness and efficiency of loan repayment collection will be enhanced through enforcement measures and strategic cooperation with government agencies and corporate entities,” the ministry said.
MOHE was responding to a question from Datuk Seri Jalaluddin Alias (BN-Jelebu) on the latest amount of debt owed by PTPTN borrowers and efforts to improve loan repayments.
The ministry also said PTPTN always welcomed borrowers to come forward for consultations and subsequently restructure their loan repayments according to their financial capabilities, or defer repayments subject to the flexibility allowed by the corporation.
What is PTPTN?
PTPTN, or Perbadanan Tabung Pendidikan Tinggi Nasional, was established in 1997 under the National Higher Education Fund Corporation Act 1997 to provide financial assistance to Malaysians pursuing studies at public and private higher education institutions.
The loans are intended to widen access to tertiary education by helping students cover tuition fees and, in some cases, living expenses. Borrowers are required to start repaying once they have completed their studies, usually through monthly instalments that can be arranged through salary deductions.
Collecting repayments has been a persistent challenge for the corporation. Over the years, successive governments have introduced a mix of discounts, repayment incentives and enforcement measures aimed at getting borrowers to settle their debts.
The latest figure of RM10.7 billion in arrears involving 1.16 million borrowers highlights the scale of the problem. The ministry said it would continue to review loan terms to ensure the funds reach those who need them most, while stepping up collection efforts through enforcement and partnerships with government agencies and the private sector.
Borrowers struggling to pay were encouraged to approach PTPTN to discuss restructuring or deferring their repayments. - BERNAMA
