While fulfilling the dreams of many students to complete higher education, not everyone has the awareness to repay their loans. Even years after graduation, and at the age of 60, some still haven’t settled the higher education fund loan (PTPTN) they once owed.
The chairman of the Higher Education Fund Corporation, Datuk Seri Noordorizah Abdul Rahim, stated in an exclusive interview with Daily News that reaching an old age without settling a loan is unreasonable.
She said that the awareness to repay loans is especially important, particularly as the Higher Education Fund needs RM3 billion annually to support 450,000 existing students and an average of 150,000 new borrowers.
She admitted that the corporation needs sufficient funds each year to meet demand, and one of their biggest challenges is recovering the educational loans disbursed.
During the interview, Noordorizah revealed that over 430,000 borrowers have never repaid their loans, involving RM5.46 billion in unpaid debt. This forms part of the RM11.32 billion owed by over 1.25 million borrowers as of last September.
“If someone is unable to repay due to unemployment within two to five years, it is understandable. But what about over ten years?”
She emphasized that repaying loans is crucial and relates to the survival of the educational loan fund, which continues to help future generations of students.
Noordorizah said they would deeply understand the reasons for arrears, and after exploring the origins, discovered that some people are truly unable to repay, even facing unemployment and health issues, and some are entirely unaware of the importance of loan repayment.
“Some even perceive loan repayment as a secondary matter, which is unfair to those who are responsible and committed to repaying loans. Many people come from economically disadvantaged families.”
“Due to the failure of other borrowers to fulfill their responsibilities, this educational fund is under threat. They understand that the opportunity for further study is a trust and responsibility, ensuring that future generations also have the same opportunities.”
“As a society, we need to cherish the system that helps millions complete their higher education dreams and dedicatedly ensure its sustainable development.”
Noordorizah added that the corporation uses various methods to reach out to borrowers, ensuring they repay their loans, including sending emails, making calls, and sending arrears and reminder notifications via the myPTPTN app.
“We make it easier for lenders to interact with us and also conduct educational activities to make them aware of the responsibility of loan repayment.”
She explained that taking into account that borrowers might face economic problems, the Higher Education Fund emphasizes handling with empathy rather than excessive pressure.
“We truly hope they can step up, and we are ready to help, while they also need to fulfill the responsibility of repayment. The reason for discussing and negotiating with all borrowers is because we pave the way for their stepping up.”
“Some people may be scared when contacted by the Higher Education Fund Corporation. Don't be afraid; we are prepared to assist all borrowers in the most prudent and best way possible so that they can repay the loan.”
When asked if actions will be taken against stubborn arrears, Noordorizah indicated that if necessary, they might focus on borrowers who haven't repaid their loans for 10 years or more.