KOTA KINABALU (Bernama) - The National Higher Education Fund Corporation (PTPTN) must be stricter with errant borrowers and send them monthly reminders.
Chairman PTPTN's Public Consultation Independent Advisory Panel Sheikh Shahruddin Sheikh Salim said the time had come for the corporation to be stricter and send more frequent reminders to borrowers.
"About 51% of PTPTN borrowers are errant with 32% (616,000) making inconsistent payments and 19% (356,000) who never paid back the loan, with arrears amounting to RM2.8bil," he said.
Sheikh Shahruddin was speaking at the town hall session of the PTPTN public consultation paper in Universiti Malaysia Sabah (UMS) here on Wendesday (May 29).
He said PTPTN must tackle its main challenge, which involves financial constraints caused the low repayment rate of loans.
"We will listen to all opinions from the public and submit the ideas to the PTPTN to improve the 10 proposed in the Public Consultation Paper," he said.
The 10 ideas in the paper which can be accessed through the PTPTN official portal include postponement of repayment for borrowers earning RM4,000 and less; changing the repayment system to one based on income for new borrowers; mandatory salary deductions; and strict enforcement for errant borrowers based on previous repayment period.
It also includes abolishing the exemption given to first class graduates or replacing it with partial exemption; reducing the number of borrowers and stopping loans given to private tertiary institutions and low performing courses; and increasing fees charged to new borrowers. – Bernama