The PTPTN: What should be done about defaulters?

During the Najib-led BN regime, PTPTN loans piled up as more and more decided not to repay their borrowings.

Defaulters owe the PTPTN RM39 billion.

What should the Mahathir-led PH Government do? What can it do?

20 September 2018



KUALA LUMPUR: Prime Minister Dr Mahathir Mohamad today criticised National Higher Education Fund Corporation (PTPTN) borrowers who refuse to repay their loans, saying the government was owed some RM36 billion in unpaid student loans.

He said the government had spent a lot of money on PTPTN loans so that poor Malaysians could study at local or overseas universities and ultimately earn a higher income.

“Unfortunately when they came back, many of them didn’t want to repay the loans they took.

“I’m ashamed but they are not. They are earning an income which can allow them to pay very well, they just don’t feel like paying,” he said at a lecture at Universiti Teknologi Malaysia (UTM) today.

Mahathir said it only cost RM100 a month to repay the loan which wasn’t much for someone earning a RM2,000 salary.

“Yet they don’t pay. Why? Because they don’t have integrity, they are not trustworthy.”

When things like this happened, he said, such individuals would be seen as a typical example of a particular race, thus affecting others from the same community.

The repayment of study loans under PTPTN was among the issues raised in Pakatan Harapan’s (PH) 10 election promises which it said it would fulfil within its first 100 days in power.

The coalition promised to allow an extension period for repayment until a borrower’s salary reached at least RM4,000 a month. It also pledged to lift the travel ban on the thousands who had defaulted on their payments.

11 August 2018

KUALA LUMPUR, Aug 11 — Tun Dr Mahathir Mohamad has revealed that the amount owed to the National Higher Education Fund (PTPTN) from its defaulters is almost the same as 1Malaysia Development Bhd’s (1MDB) total debts.

The Malaysian Insight quoted the prime minister as saying that in total, defaulters owe PTPTN RM39 billion in outstanding loan repayments.

The 93-year-old prime minister, who was speaking to a gathering of students at the Malaysian Student Leaders Summit X11 today, reportedly said the sum was “almost the same” as what is owed by the controversial 1MDB.

However, Dr Mahathir did not disclose the exact amount of 1MDB’s debts.

The Auditor-General’s report on 1MDB estimated that the state investment vehicle needs an estimated RM42 billion to settle the principal and interest on its loans.

KUALA LUMPUR: Deputy Education Minister Teo Nie Ching said today that she is disappointed that her statement on National Higher Education Fund (PTPTN) borrowers had been twisted by some media and netizens on social media.

Teo said her statement in the Dewan Rakyat earlier this week did not mean that defaulters would be placed on the bankruptcy list.

“I am disappointed because what I said was that their situation cannot be compared to the private banking system where loan defaulters will be listed as bankrupt.

“It is not fair to apply the same to students who failed to repay their PTPTN loans, that was what I meant,” she told reporters after opening the ”Majlis Pertandingan Koakedemik Bahasa Melayu Peringkat Kebangsaan Dewan Bahasa dan Pustaka (DBP) – Kementerian Pendidikan Malaysia (KPM)” event here yesterday.

The last few days saw postings widely being shared on Facebook that Teo had said that the government would make bankrupt PTPTN loan defaulters. – Bernama

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One Response to The PTPTN: What should be done about defaulters?

  1. Doris Looi says:

    Already o,s,

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