If you've pursued higher education at a college or university, chances are you may have borrowed money from the National Higher Education Fund Corporation (PTPTN) as financial aid. Unfortunately, not all Malaysians who benefitted from these loans have repaid them, causing the debt to grow each year.

430,000 Malaysians Haven’t Repaid PTPTN Loans

According to Higher Education Minister Datuk Seri Zambry Abd Kadir, 430,000 borrowers have failed to repay their PTPTN loans, leading to a staggering RM6 billion in unpaid debt, as reported by NST.

Zambry expressed concern that this irresponsibility has jeopardized PTPTN’s financial stability. Many defaulters have not even started repaying their loans years after graduating from university.

“This group hasn’t bothered from the day they left university. They haven’t informed us about their situation, where they work, or how they plan to repay,” Zambry stated during a PTPTN Loan Advance (WPP) presentation ceremony in Lumut on September 21st. “There should be discussions. They simply don’t care about repaying.”

Consequences of Defaulting on PTPTN Loans

For those unaware, failure to repay PTPTN loans can result in legal action, travel bans, an inability to renew or apply for passports, and a damaged credit score.

Legal Action on the Horizon

Zambry added that due to the growing amount of unpaid loans, the government is holding cabinet-level discussions about taking legal action against the 430,000 defaulters. PTPTN chairperson Datuk Seri Norliza Abdul Rahim will announce the timeline and specific actions soon.

However, Zambry emphasized that consideration will be given to individual circumstances. "We understand the current economic situation, but I urge borrowers to come forward and explain their situations."

He stressed the importance of repaying the loans, as the funds will support future generations of students.