PTPTN mulls ceasing funds for courses with low repayment rates

 

It was previously reported that by the end of last year, PTPTN had approved 3.95 million loans involving RM71 billion, with RM32 billion from 2.7 million loans still unpaid.

PETALING JAYA: 

The National Higher Education Fund Corporation (PTPTN) is considering halting funding for university courses that have low student loan repayment rates.

PTPTN CEO Ahmad Dasuki Abdul Majid said this initiative is part of a collaboration with local universities to encourage better repayment behaviour among borrowers, Buletin TV3 reported.\

“We may cease funding for courses with a repayment rate of below 30% at certain universities,” he was quoted as saying at a webinar today.

“Universities must also help cultivate good habits to get more students to repay their study loans.”

Ahmad gave an assurance that funding will continue for courses with a high repayment rate.

As of September, PTPTN had disbursed a total of RM74 billion in loans.

In a written parliamentary reply, higher education minister Zambry Abdul Kadir revealed that by the end of last year, PTPTN had approved 3,951,404 loans involving RM71 billion.

However, more than 2.7 million loans, totalling RM32 billion, remained unpaid.

Zambry also said 72% of the loans were granted to Bumiputera students and 28% to non-Bumiputera students. - FMT