PETALING JAYA: The National Higher Education Fund Corporation (PTPTN) reported an outstanding loan amount of RM10.853bil owed by 1.2 million borrowers in 2023, according to the Auditor-General’s report series 1/2025.
This is the highest outstanding amount recorded by the education fund, with the lowest being RM6.348bil owed by 970,000 borrowers in 2018.
The report said the loan tenure ranges between less than a year and up to 12 years.
Meanwhile, the repayment amount for 2023 was RM3.553bil.
“The overall outstanding payments have increased between 2019 and 2023,” the report said.
The audit also found that the repayment trend against the outstanding reported between 2014 and 2023 was between 7.3% and 79.3%.
The government had also paid PTPTN RM1.268bil for the discounts offered on loan repayments.
The loan repayment between 2014 and 2023, stood at RM26.41bil involving 106.09mil transactions. These payments were collected through several means including direct debit, deduction from salary, EPF and online payment among others.
In its response to the audit findings, PTPTN said reminders have been issued to 25,257 defaulters as part of the enforcement actions.
Notices of Demand have also been sent on Nov 26 to 3580 borrowers as of Dec 14.
“Emails informing 10,388 defaulters on travel restrictions have been sent out since Dec 16,2024,” said PTPTN.
“PTPTN has also formed strategic alliances with federal and state agencies and private sector employers. Through this strategic cooperation, PTPTN has managed to increase the repayment amount by RM120.10mil as at Dec 31, 2024,” it added.
The Finance Ministry(MOF) in its response to the audit said it is aware of the RM280.15mil outstanding payment for the period between 2019 and 2023, adding that any funds channeled will be based on the government’s balance sheet.
The government had allocated RM1.5bil for the period, the Finance Ministry said.
It added that additional funds would be channeled to cover PTPTN’s cost including discounts and subsidy incentives, SSPN grants and moratorium payments based on the government’s current financial position.
In the audit recommendation, the Auditor-General said PTPTN review its loan collection mechanism and improve the management of loans. This, it said will reduce the fund’s dependence on loans from financial institutions.
PTPTN have also been urged to review the discounts incentives and the full repayment exemption to first class honour students.
