More than 400,000 Malaysians who took loans from the National Higher Education Fund Corporation (PTPTN) have never made any repayment.
According to Higher Education Minister Datuk Seri Dr Zambry Abd Kadir, this group has left PTPTN with RM5 billion in unpaid loans.
These borrowers completed their studies more than 10 years ago.
No payments made at all
“These are individuals who haven’t paid a single sen since borrowing,” said Zambry during a media briefing in Putrajaya.
He stressed that PTPTN offers flexible repayment options, especially for borrowers with financial problems.
Flexible options for struggling borrowers
Zambry said borrowers could negotiate repayment terms, including a small initial payment.
He explained that PTPTN doesn’t demand large upfront amounts, but will suggest covering at least several months of instalments.
He added that repayment amounts depend on monthly income, usually between 5 to 6 percent.
Loan period may be extended
PTPTN also considers the borrower’s age.
For example, those who are 40 can extend repayments until they turn 60.
The minimum repayment usually covers three to six months of instalments, based on salary and loan period,” he said.
Total PTPTN debt keeps growing
Back in February, it was reported that 1.2 million borrowers had yet to repay their PTPTN loans.
This contributed to a total unpaid amount of RM10.8 billion as of December 31, 2023.
The Auditor General, Datuk Wan Suraya Wan Mohd Radhi, said PTPTN’s unpaid loans increased from RM7.316 billion in 2019.
