The National Higher Education Fund Corporation (PTPTN) is evaluating the possibility of halting funding for university programs with student loan repayment rates below 50%, according to NST.
This move aims to address challenges in loan recovery and promote a culture of loan repayment among students.
Trying to foster repayment culture
“We are working with universities to foster a repayment culture among borrowers.
“One potential approach is to continue funding for courses that demonstrate a high rate of loan repayment,” said PTPTN Chief Executive Officer Ahmad Dasuki Abdul Majid during a webinar hosted by Khazanah Research Institute titled “Individual vs. Collective Interests: The Student Loan Conundrum.”
Ahmad Dasuki added that funding might be withheld for courses at specific institutions where repayment rates fall below 50%, emphasizing the importance of collaboration with universities to improve these outcomes.
PTPTN was founded with the mission to support students with strong SPM results in pursuing higher education, whether in public or private institutions.
“Our model relies on repayments. We encourage graduates with stable employment to repay their loans, enabling us to assist future students who need financial support,” Ahmad Dasuki explained.
As of September, PTPTN had disbursed a total of RM74 billion in loans.
In a parliamentary response earlier this week, Higher Education Minister Datuk Seri Dr. Zambry Abdul Kadir reported that PTPTN had approved 3,951,404 loans, amounting to RM71 billion by the end of last year.
Out of these loans, over 2.7 million remain unpaid, with an outstanding balance of RM32 billion.
