PTPTN Aims To Balance Compassion With Accountability In Loan Repayments

Samuel Chua

27th October 2025 - 3 min read

The National Higher Education Fund Corporation (PTPTN) is tightening its approach to student loan repayments by focusing on fairness and sustainability. Borrowers who genuinely struggle to make payments will be supported, while those with the means to repay but who continue to default may face stricter action.

Borrowers With Means Expected To Repay

PTPTN’s internal checks found that nearly a third of its 1.2 million defaulters appear financially capable of paying off their loans. The findings, based on data matched with several government agencies, showed that some borrowers continue to travel abroad or earn steady incomes but have yet to begin repayment.

As of 31 August 2025, total arrears stood at RM11.18 billion. Around RM5.25 billion of that amount involves borrowers who have never made a single repayment, despite some being in stable employment for years.

According to PTPTN chairman Datuk Seri Norliza Abdul Rahim, borrowers working overseas are also among the defaulters. Some Malaysians earning between RM6,000 and RM10,000 in Singapore have yet to fulfil their obligations, even though minimum monthly instalments can be as low as RM100.

She said PTPTN may consider imposing travel restrictions on those proven to have sufficient means to repay. Persistent non-payment, she added, affects the fund’s capacity to provide financial assistance to new students.

Compassion For Borrowers Facing Hardship

Higher Education Minister Zambry Abdul Kadir said not all defaulters are in the same situation. The government wants PTPTN to act with compassion toward graduates experiencing financial difficulty, especially those still building their careers or facing unstable income.

Borrowers who fall into this category are encouraged to contact PTPTN to discuss repayment adjustments. According to Zambry, flexible scheduling or restructuring can help prevent them from falling further behind.

“The aim is not to penalise those who genuinely cannot afford to pay, but to ensure they communicate with PTPTN and find a workable solution,” he said during the National Academic Awards ceremony.

A Fairer, More Sustainable Repayment System

Zambry also noted an increase in repayment activity following the 2026 Budget announcement, which includes travel restrictions for long-term defaulters. He explained that PTPTN’s current direction is about fairness, distinguishing between borrowers who are unable to pay and those who choose not to.

Both the ministry and PTPTN leadership agree that improving compliance is crucial for the fund’s sustainability. The balance between compassion and accountability will help protect future access to affordable higher education loans for Malaysian students.

0 0 votes

Article Rating