430,000 Malaysians Never Paid Back Their PTPTN Loans, Totalling RM6 Billion
Higher Education Minister Datuk Seri Zambry Abd Kadir warned that action will be taken against the defaulters.
By May Vin Ang — 23 Sep 2024, 04:35 PM
The National Higher Education Fund Corporation (PTPTN) has revealed that 430,000 Malaysians never repaid their study loans, with the debt coming up to a total of RM6 billion
According to the New Straits Times, Higher Education Minister Datuk Seri Zambry Abd Kadir said the irresponsible attitude of these individuals has put PTPTN's financial position at risk.
He said some of these defaulters graduated decades ago without making a single repayment.
"This is a category that hasn't cared from the first day they left (university), they haven't informed us of their situation, where they work, or how they intend to (make repayments).
"There should be discussions. They simply don't care about paying back," he said at a PTPTN loan advance presentation ceremony in Lumut, Perak on Saturday, 21 September.
He warned that PTPTN will take follow-up action, including the possibility of legal action, against defaulters
"We have had in-depth discussions at the cabinet level for the next steps.
"I do not deny that follow-up actions will be taken against [defaulters], including legal action," he said.
Zambry, however, said PTPTN would remain considerate towards these borrowers given the current economic situation
"We understand the situation, but I urge them to come forward and explain their circumstances.
"They must also have a moral responsibility, because once they repay, the money will be used to help the next generation," he explained.
He added that details on the timeframe and type of action to be taken against defaulters will be announced by PTPTN chairperson Datuk Seri Norfiza Abdul Rahim in the near future.
