ONE in five national study loan borrowers makes no attempt whatsoever to repay his loan to the National Higher Education Fund Corporation (PTPTN), said its chairman, Wan Saiful Wan Jan.

He said 19% of borrowers are in this category while another 32% are inconsistent in paying their debts.

Together, these two groups make more than half of national study loan borrowers who are considered troubled defaulters, he told The Malaysian Insight.

The defaulters can push the corporation’s debt to RM76 billion by 2040 if the situation is not handled well, he said.

PTPTN is presently saddled with a RM40 billion debt.

The corporation’s current debt is almost equivalent to the government’s guaranteed debt of the 1Malaysian Development Bhd (1MDB) which is RM42 billion.

He said: “32% of the borrowers or 616,000, who have borrowed up to RM3.6 billion, do not repay their loan consistently.

“Then there are 19% who have never paid a sen at all, meaning that 51% of the borrowers are in trouble.

“PTPTN currently has a RM40 billion debt guaranteed by the government. The risk or the potential risks faced by PTPTN if the arrears continue to increase is that the debt obligation is projected to reach RM76 billion over the next 20 years.”

With such a debt burden, the corporation, therefore, has to find ways to make these defaulters start paying.

PTPTN is also making efforts to understand why so many have trouble repaying.

“We need to understand their financial background and why they could not make the repayment.”

He said those with financial problems need to seek assistance from the corporation.

“We can negotiate.”

He said social-media users could assist by forwarding to PTPTN’s official website suggestions on repayment methods.

“A lot of people have given their comments and views in the various social media platforms like the WhatsApp, for example.”

Wan Saiful, however, said the comments are made in personal accounts or groups.

“I, therefore, call on them to transfer these comments to PTPTN’s website so that all the views could be analysed for a solution.

“It is no use to be outspoken in the social media if they are not channelled to the right channel.”

If PTPTN’s debt problem is not addressed, it would affect future students who probably can no longer enjoy such loans to further their studies, he said.

For every RM7,000 not repaid, it would will result in a new application being rejected for lack of funds.

If a loan of RM21,000 goes unpaid, “three students accepted into a university will go crying as they probably face the financial crunch or could not afford the study”.

The PTPTN, from its inception and until December 31, 2018, had lent to more than three million borrowers involving a total sum of RM56 billion.

Up to December 31 last year, only 69% of the targeted amount was recovered.

The arrears have reached RM6.3 billion.

In the meantime, a PTPTN borrower who has been repaying his loan consistently said payment could be done easily with some negotiation.

“I did not make any repayment for two years and my arrears kept piling up.

“If I had stuck to scheduled repayment plan, I could repay RM400 a month but after negotiations, I only had to pay RM200 and over a longer period of time.

“Since we had borrowed, it is only right that we pay back.

“If everyone has no sense of responsibility, just imagine what our action would do to other students,” said Mohd Shah, 30, who works as a technician.

Fairuz Karmila, who paid off her debts, shares the same sentiments.

“I settled everything with the money from my EPF. I have many commitments but all problems can be resolved.

“What matters is that we have the intention to pay,” said the 32-year-old mother of one.

However, Huzaimi Abd Ghafar, 32, said he was unable to make any repayment because his salary as a tuition teacher is insufficient.

“My loan is more than RM30,000. I became unemployed when the company I was working for closed down.

“Since then, it has been difficult to find a permanent job. Now as a teacher, I am paid hourly.

“I have a home and a car to pay. My salary is just not enough,” he said.

In Pakatan Harapan’s GE14 manifesto, it promised to postpone the repayment of PTPTN loans for graduates whose salaries are below RM4,000 per month and to abolish the blacklisting policy.

Since coming to power, Wan Saiful said, the corporation has been looking into ways for borrowers to repay their loans while the travel ban on 429,945 defaulters has been lifted.

However, there are fresh calls to impose the travel ban again although PTPTN has said no final decision has been made on that. – May 23, 2019.