RM6 billion in student loans still unpaid

 

Higher education minister Zambry Abdul Kadir said the national higher education fund corporation is considering taking legal action. (Bernama pic)

LUMUT: 

An estimated RM6 billion in student loans remains unpaid by a total of 430,000 borrowers from the national higher education fund corporation (PTPTN), higher education minister Zambry Abdul Kadir said.

He said the borrowers had never made any repayments despite many of them having established careers.

Zambry said the amount of unpaid loans had steadily increased each year, directly affecting PTPTN’s financial resources.

He said the borrowers had a moral responsibility to repay the loans as the funds would be used to assist future generations.

Zambry said PTPTN plans to take legal action against defaulters. 

The details are still being finalised. For now, we remain reasonable and will not close the door on negotiations with those who wish to settle their debts,

 he said.

The minister was speaking to reporters after presenting a total of RM322,500 in loan advances to 215 eligible students in the Lumut constituency.

PTPTN chief executive Ahmad Dasuki Abdul Majid said 980,120 students have benefitted from the loan advance initiative since 1999. - FMT