50,000 students might miss PTPTN loans this year

ABOUT 50,000 students may be deprived of their National Higher Education Fund Corporation (PTPTN) loans when they enrol for varsity courses between July and December this year, reported Berita Harian.

This was because 183,000 people had defaulted on their PTPTN loans, involving a loss of funds involving RM1.3bil.

“Their failure to pay is serious as they represent 19% of the total number of PTPTN borrowers so the fund is losing RM1.3bil in future loans,” a source told the Malay daily.


He said while the Finance Ministry had granted PTPTN a RM4bil allocation for this year, the amount could only cover 75% of the new and existing borrowers.

About 25% would not get the loans.

PTPTN, said the source, had suggested for defaulters to be blacklisted under Bank Negara’s Central Credit Reference Information System (CCRIS) but this idea was rejected by the Cabinet.

“However, PTPTN may tighten the requirements for new borrowers to ensure that more people can get the loans,” said the source.

(Source: The Star, 21 June 2014)