A Malaysian woman and her three guarantors have been ordered to repay RM857,000 in outstanding study loans to Majlis Amanah Rakyat (MARA) after she failed to complete her PhD at the University of Cambridge.
According to Free Malaysia Today, the High Court in Sungai Petani dismissed their appeal against an earlier Sessions Court ruling, which had ordered them to repay the amount to MARA.
Took MARA loans for master’s and PhD studies
The woman, identified as 45-year-old Siti Norbaya Ahmad Nor, first received a MARA loan in 2011 to pursue her master’s degree at the University of Manchester.
She later received a second MARA loan in 2013 to pursue a Doctor of Philosophy (PhD) at the University of Cambridge.
Her three guarantors, Siti Zaliha Ahmad Nor, Siti Farhana Ahmad Nor and Jamilah Long, had signed both loan agreements as guarantors.
MARA later initiated legal proceedings after claiming that Siti Norbaya had failed to repay the loans.
Failed to complete PhD
According to the report, the 2013 offer letter and loan agreement clearly required Siti Norbaya to complete her PhD within four years.
In a letter dated Feb 15, 2017, she acknowledged that she was unable to complete her doctorate within the sponsorship period. MARA then granted her an extension until August 2017.
However, she still failed to complete the programme.
Judicial Commissioner Darmafikri Abu Adam said her failure to complete the PhD within four years and seven months amounted to a breach of contract.
As a result, the court ruled that MARA was entitled to claim the full loan amount under the 2013 loan agreement.
Appeal dismissed by High Court
In their appeal, Siti Norbaya and the three guarantors argued that she had completed her master’s degree within the required period.
They also claimed that MARA’s claim under the 2011 loan agreement was barred by the Limitation Act 1953.
However, the High Court rejected the argument, with Darmafikri saying that MARA had the contractual discretion to decide when repayment became due.
He also found that the legal action filed by MARA in 2022 was still within the allowed time period.
The court further noted that the Sessions Court had found Siti Norbaya had still not completed her PhD at the time of trial.
Guarantors also liable
Darmafikri said the intention of the parties was clear from the start, and Siti Norbaya could not adopt a different interpretation of the agreement to avoid her repayment obligations.
He also said the three guarantors were bound by the same agreements they had signed.
The High Court found no merit in the appeal and said the Sessions Court’s findings were reasonable, supported by evidence, and did not show any clear error.
The appellants were also ordered to pay RM10,000 in costs to MARA.
Case sparks discussion online
The case has since drawn public attention online, with many discussing the risks of becoming a guarantor for study loans.
Some netizens pointed out that postgraduate studies, especially a PhD, can be difficult to complete within a fixed timeframe.
Others said the case was a reminder that loan agreements and guarantor responsibilities should be taken seriously before signing any contract.
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