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 Jelebu MP Datuk Seri Jalaluddin Alias.
It said loan terms and conditions are 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 in October last year.
The ministry said the government is mindful of borrowers who genuinely struggle to make repayments.
“PTPTN is always open to and we welcome 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 added.
In a separate reply to Tasek Gelugor MP Datuk Wan Saifulruddin Wan Jan, the ministry said PTPTN no longer receives a specific government allocation to fund its loans.
Repayments from borrowers who have completed their studies are its main source of funds, and any shortfall is covered by issuing sukuk or borrowing from local financial institutions under a government guarantee, it added.
