PETALING JAYA: The National Higher Education Fund Corporation (PTPTN) has noticed borrowers that have reached the age of 60 have still not settled their loans.
PTPTN Director Datuk Seri Norliza Abdul Rahim said this when commenting on the PTPTN borrowers’ level of awareness in fulfilling their responsibility in repaying the loan.
“It is not right that at that age there are those who have not cleared their loans,” she was quoted as saying by Berita Harian.
Norliza asserted how this awareness is important because the corporation needs around RM3 billion to cover the higher education costs of 450,000 existing borrowers and an average of 150,000 new borrowers annually.
“PTPTN needs to have adequate funds to fulfill the demand each year,” she was quoted as saying.
She said over 430,000 borrowers have not made any repayments even once, involving arrears amounting to RM5.46 billion, which is part of the total arrears of RM11.32 billion with more than 1.32 million borrowers until September last year.
Norliza reiterated that it is vital to pay back the loans granted by PTPTN to help students in need because if funds are insufficient, it will affect the education fund body’s continuity to aid generations of future students.
In an effort to stem this problem, Norliza said the education fund body has conducted in-depth research to determine the main cause behind default payments.
Findings showed that borrowers absolutely cannot afford to pay off the loans, lose their jobs or go through health problems; however, another part of the research found that borrowers do not realise the importance of fulfilling their responsibility.
She added that there are borrowers who set loan repayments as “low priority.”
Norliza added that PTPTN also emphasised an empathetic approach in dealing with borrowers by taking economic conditions they may face into account.
“We truly want them to come forward because we want to help, and at the same time, they need to fulfill their responsibility to repay. So, to all borrowers, negotiate and discuss because we are opening the way for them to come forward.
“Some, when contacted by PTPTN, become scared. Don’t be afraid, we are ready to assist all borrowers in a wise and best manner so that they can repay the loan,“ she was quoted as saying.
Regarding the issue of stricter measures taken if borrowers have not settled their loans, she said, the corporation, if necessary, will focus on those with arrears of over 10 years who have not made any payment.
