Unpaid PTPTN loans hit RM10.7bil, says Higher Education Ministry
The Malaysian Higher Education Ministry reports that PTPTN student loan arrears have reached RM10.7 billion. The government is seeking to restructure repayments for struggling borrowers while revising loan terms to ensure sustainability.
Why it matters
High levels of student debt impact national fiscal health and the accessibility of higher education for future generations.
KUALA LUMPUR: Arrears owed by 1.16 million National Higher Education Fund Corporation (PTPTN) borrowers stood at RM10.7bil as of Aug 31, with enforcement among the steps taken to boost collection, says the Higher Education Ministry.
PTPTN is also working with government agencies and corporations to improve collection, the ministry said in a written parliamentary reply to Datuk Seri Jalaluddin Alias (BN-Jelebu).
It said loan terms and conditions were being revised so that loans are better targeted at those in need, based on what PTPTN can afford.
The arrears stood at RM11.18bil as at Aug 31 last year, PTPTN chairman Datuk Seri Norliza Abdul Rahim said last October.
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