More than RM5b in PTPTN loans remain unpaid by 753,058 former students

KUALA LUMPUR: A total of 753,058 people (former students) who took the National Higher Education Fund Corporation (PTPTN) loans have yet to repay a total of RM5.191 billion to the corporation.
Higher Education Minister Idris Jusoh (pix) said PTPTN had collected only RM9.6 billion until Aug 31 this year when in actual fact the amount collected should have been RM18.311 billion.
Idris said this in his written reply to Che Mohamad Zulkifly Jusoh (BN-Setiu), who asked how many defaulters had not repaid a single sen to PTPTN.
Out of the remaining RM8.71, he said, RM5.191 billion was due to the 753,058 not repaying their loans while the RM3.518 billion is from current borrowers who did not repay.
Idris added PTPTN had created several initiatives and suggestions to help debtors to repay back their loans.
Among the initiatives made by PTPTN is to open up 74 branches nationwide to ease the consultation and repayment to their customers.
The corporation also suggested its borrowers to restructure their payment, enabling them to pay off until they are 60 years old.
The recently tabled Budget 2017 also saw several incentives given to encourage borrowers to repay their PTPTN loan.
For full settlement of outstanding debt, a 15% discount would be given, while a 10% discount would be given for payment of at least 50% of the outstanding debt.
Borrowers repaying through salary deduction or direct debit would also receive a 10% discount.
The above incentives is effective beginning Oct 22 till December 2017.