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.
The ministry said the government was mindful of borrowers who genuinely struggled to make repayments.
"PTPTN is always open to and welcomes these borrowers to come forward for discussions to restructure their loan repayments according to their ability, or to defer repayment within the flexibility allowed by PTPTN," it said.
In a separate reply to Datuk Wan Saifulruddin Wan Jan (PN-Tasek Gelugor), the ministry said PTPTN no longer received a specific government allocation to fund its loans.
Repayments from borrowers who have completed their studies are its main source of funds. Any shortfall is covered by issuing sukuk or borrowing from local financial institutions under a government guarantee, it added.
