If you’re currently a student or were one previously, chances are you most likely have borrowed money from the National Higher Education Fund Corporation (PTPTN) to fund your studies.
A recent report revealed a startling figure in PTPTN loans yet to be fully repaid by millions of borrowers across the country, which has swollen to epic proportions.
RM10.8bil in PTPTN loans still owed by 1.2mil borrowers
According to NST, the current figure of unpaid PTPTN loans as of Dec 31, 2023, stands at RM10.8 billion, which is owed by a total of 1.2 million borrowers.
In a latest report by PTPTN Auditor-General Datuk Wan Suraya Wan Mohd Radhi, she revealed outstanding education loan repayments had risen from RM7.316 billion in 2019.
In the report, the highest arrears fall between four and six years, totaling RM3.374 billion from 302,613 borrowers. This is followed by arrears between ten and twelve years (RM2.55 billion from 98,477 borrowers) and seven to nine years (RM2.31 billion from 127,877 borrowers).
Borrowers with arrears of one to three years owed RM1.57 billion, while those exceeding 12 years totalled RM815 million. Arrears under a year involved 298,804 borrowers, amounting to RM227 million.
Between 2014 and 2023, PTPTN received RM26.414 billion in loan repayments through 106.09 million transactions. Salary deductions accounted for 23.84 million transactions, while the rest were made through direct debit, EPF withdrawals, counter, and online payments.
Actions taken to ensure repayments
Given the high amount of unpaid loans, PTPTN has since brought back various enforcement actions which were previously halted in 2018.
This included reminder letters being issued on Nov 11, 2024, to 25,257 borrowers, followed by Notices of Demand to 3,580 borrowers starting Nov 26.
PTPTN also blacklisted 10,388 defaulters from traveling abroad and launched repayment campaigns, such as ‘Kempen Bayar Konsisten, Hati Senang’ and ‘Kempen Bayar Tunggakan RM300’.
It is also considering appointing a debt collection agency this year and has strengthened collaborations with government agencies and private employers, leading to increased repayments to RM120.10 million by Dec 31, 2024.
In the report, it also suggested that PTPTN review its repayment collection strategy and implement targeted collections based on arrears duration so that it doesn’t have to rely on loans from local financial institutions to function effectively.
Other recommendations also included evaluating discount incentives and full loan exemptions for first-class graduates and pursuing legal actions against those who fail to repay their loans.
This is an increase from the RM6bil figure which was reported last year:
