Higher Education Minister Datuk Seri Zambry Abd Kadir recently revealed that around 430,000 borrowers have defaulted on their PTPTN loans, contributing to a staggering RM6 billion in unpaid debt, according to a report by NST. These defaulters, some of whom have not made any payments since graduating, have put PTPTN's financial standing in jeopardy.
"This is a category that hasn't cared from the first day they left university. They haven't informed us of their situation, where they work, or how they intend to make repayments," Zambry said at a PTPTN Loan Advance (WPP) ceremony in Lumut on September 21. He stressed that while PTPTN is open to discussions, many defaulters simply ignore their obligation to repay.
Failure to repay PTPTN loans can have serious consequences, including legal action, travel restrictions, passport renewal difficulties, and damage to ones credit score. Given the mounting debt, Zambry said the government is holding cabinet-level discussions to address the issue, including the possibility of legal action against defaulters. PTPTN chairperson Datuk Seri Norliza Abdul Rahim is expected to announce the details soon.
However, Zambry urged borrowers to come forward and explain their situation, acknowledging the challenges of the current economic climate. "They must also have a moral responsibility, because once they repay, the money will be used to help the next generation," he emphasized.
Source: NST
