430,000 borrowers fail to repay PTPTN loans totalling RM6 bln

LUMUT (Sept 21): A total of 430,000 borrowers have failed to repay their loans from the National Higher Education Fund Corporation (PTPTN), amounting to an estimated RM6 billion.

Higher Education Minister Datuk Seri Dr Zambry Abd Kadir said that these borrowers have never made any repayments to PTPTN despite many having established careers.

He noted that unpaid loans have steadily increased each year, directly impacting PTPTN’s financial resources.

“…this is a moral responsibility that borrowers need to fulfil, as the funds repaid will be used by PTPTN to assist future generations,” he told reporters after attending the PTPTN Loan Advance Payment (WPP) handover ceremony here today.

Earlier, Zambry also presented WPP amounting to RM322,500 to 215 eligible students in the Lumut constituency, attended by PTPTN chairman Datuk Seri Norliza Abdul Rahim and chief executive officer Ahmad Dasuki Abdul Majid.

Zambry stated that PTPTN is planning to take legal action against these defaulters.

“I have been informed by PTPTN regarding this matter, but the details concerning the enforcement are still being finalised. For now, we remain reasonable and will not close the door on negotiations for those who wish to settle their debts,” he said.

Meanwhile, Ahmad Dasuki noted that a total of 980,120 students have benefited from the WPP initiative, with a total allocation of RM1.45 billion since its introduction in 1999 to Aug 31, 2024.

According to Ahmad Dasuki, the initiative aims to ease the financial burden on students pursuing education at institutions of higher learning, polytechnics, and community colleges.

“PTPTN hopes that this WPP will be used wisely by students to cover tuition fees, necessary items while at university, and other relevant expenses,” he added. – Bernama