Some 214,790 borrowers have yet to repay National Higher Education Fund Corporation (PTPTN) loans amounting RM1.1bil from 1997 until Feb 28 2011.
Higher Education Minister Mohamed Khaled Nordin said that they had failed to respond to enforcement measures undertaken by PTPTN. He said 673,205 (75.8%) of 887,995 borrowers had repaid loans with total loan repayment of RM2.3bil (48.9%) of the RM4.7bil owed.
“Repayment has increased by over 70 percent but collection is still low as repayment is done after negotiation,” he said at the accreditation of the Personal Financial Management module by the Malaysian Qualification Agency (MQA).
Since its inception in 1997, PTPTN had approved loans amounting RM38.15bil. Last year alone, PTPTN approved 238,722 loans using an allocation of RM6.04bil.
Khaled said the Personal Financial Management module will be offered in all higher education institutions to create a prudent financial management society. This is because the young are exposed to various financial facilities offered by banking institutions, particularly in terms of credit card use.
The modules will be offered as an elective course or curricula of institutions of higher learning and expected to be implemented this year. He students taking the course will earn one credit hour after the module is certified by MQA.
“PTPTN disburses loans to 200,000 students in public institutions of higher learning (IPTA), private institutions of higher learning (IPTS) and polytechnics. “As such, we need to develop their ability to manage financing so that they do not forget to repay PTPTN loans after graduation,” he said.
Thirty-two IPTA and IPTS and 27 polytechnics nationwide have adopted the module drafted by the Credit Counselling and Management Agency (AKPK).