RM2.3b in unpaid PTPTN loans will deny over 100,000 others their right to get loans

The 400,000 hardcore errant borrowers who owe RM2.3 billion in National Higher Education Fund Corporation (PTPTN) loans are advised to pay up, or they will deny over 100,000 students their right to obtain study loans from the corporation.

Its chairman Datuk Shamsul Anuar Nasarah cited that even if RM300 million PTPTN loans were unpaid, at least 15,000 students would not be able to obtain the study loans.

"At the moment, there are some 400,000 hardcore errant borrowers owing RM2.3 billion. This is a big amount," he said after attending an Aidilfitri function of the Lenggong parliamentary constituency.

Shamsul Anuar said until July 31 this year, 2.24 million students had obtained the facility from PTPTN involving RM50.52 billion in allocations.

Within the same period, he said, the corporation managed to collect back RM4.32 billion.

"The paying back of PTPTN loans has improved among borrowers due to the awareness programmes and enforcement action carried out, and public cooperation," he added.

Shamsul Anuar, who is also the member of parliament for Lenggong, said the corporation managed to collect back RM553 million in 2009, RM638 million in 2010, RM737 million in 2011 and RM800 in 2012.

He said each year, PTPTN gave out RM1.3 billion in loans to 200,000 borrowers and in future, it intended to give to more applicants to enable them to further their studies.