Some borrowers of the Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) are now 60 years old but have yet to settle their education loans.
Speaking to Berita Harian, PTPTN Chairman Datuk Seri Norliza Abdul Rahim made this startling revelation, expressing concern over the lack of repayment awareness among certain borrowers.
It’s unreasonable for someone at that age to still have outstanding education loans,” Norliza remarked.
RM5.46 billion in unpaid loans
She emphasized the importance of repayment, stating that PTPTN requires approximately RM3 billion annually to fund higher education for 450,000 existing borrowers and an average of 150,000 new borrowers every year.
PTPTN must maintain sufficient funds to meet these demands. One of our biggest challenges is recovering the funds disbursed as education loans,” she said.
According to Norliza, over 430,000 borrowers have never made a single repayment, contributing to RM5.46 billion of the total RM11.32 billion in outstanding loans owed by more than 1.25 million borrowers as of September.
“While a period of two to five years without repayment may be acceptable due to unemployment, how can one justify non-repayment for over 10 years?” she questioned.
Repayment, she stressed, is crucial to PTPTN’s sustainability, ensuring that future students who require financial assistance can benefit from the fund.
In-depth research into the issue
PTPTN has conducted in-depth research to uncover the reasons behind non-repayment of loans.
Findings show that while some borrowers face genuine challenges such as unemployment, financial difficulties, or health problems, many neglect their responsibility, placing loan repayments at a low priority.
This behavior is seen as unfair to diligent borrowers, particularly those from underprivileged families, and jeopardizes the sustainability of the fund, potentially depriving future students of educational opportunities.
Introduced several measures
To address the issue, PTPTN has introduced several measures, including sending reminders via email, phone calls, and the myPTPTN app, alongside awareness campaigns to educate borrowers on their responsibilities.
The organization also takes an empathetic approach, offering support to borrowers struggling financially, urging them to come forward without fear.
However, for long-term defaulters, especially those who have never made payments, PTPTN may consider stricter enforcement measures.
Datuk Seri Norliza Abdul Rahim emphasized the importance of collective responsibility to protect the fund’s future and ensure continued support for Malaysia’s higher education system.
