KUALA LUMPUR: The National Higher Education Fund Corporation (PTPTN) has come across borrowers over 60 years who have yet to settle their loans.
This was revealed by PTPTN chairman Datuk Seri Norliza Abdul Rahim while commenting on the level of awareness among borrowers in fulfilling their responsibility to repay their loans.
"It is inappropriate that at this age, some have yet to settled their loan payments," she said.
She emphasised that borrower awareness of loan repayment is crucial because PTPTN needs about RM3 billion annually to fund the higher education costs of 450,000 current borrowers and an average of 150,000 new borrowers each year.
"PTPTN must continue to have sufficient funds to meet these demands annually," she said, noting that one of the biggest challenges faced by the organisation was recovering the funds disbursed as education loans.
She said more than 430,000 borrowers have never made a single repayment, resulting in outstanding debts of RM5.46 billion.
This was part of a total arrears of RM11.32 billion involving over 1.25 million borrowers as of September.
"If you have not worked for two or maybe five years, that is understandable. But what about those who haven't paid for over 10 years?" Norliza remarked.
To address this ongoing issue, she said PTPTN has conducted in-depth research to identify the main reasons why borrowers fail to make repayments.
The findings showed that some borrowers truly cannot afford to repay, have lost their jobs, or faced health issues, while others simply do not recognise the importance of their responsibility.
"Some also deliberately place their PTPTN loan repayments as a low priority. This is unfair to those who are responsible and committed to repaying their loans, many of whom come from underprivileged families.
"The education fund is at risk because other borrowers fail to fulfil their responsibilities. Those who understand that the opportunity to pursue higher education is a trust and a responsibility must ensure that future generations are given the same chance.
"As a society, we need to appreciate the system that has helped millions of citizens achieve their higher education dreams and work to ensure its continuity," she said.
She added that PTPTN uses various methods to contact borrowers to ensure they repay their loans, including sending reminders and overdue notices via email, phone calls, and the myPTPTN app.
"We make it easier for them to communicate with us, and we continuously run awareness campaigns to remind borrowers of their responsibility to repay their loans," she said.
At the same time, she said PTPTN also adopts an empathetic approach, taking into account the economic challenges borrowers may be facing, rather than simply demanding payments.
"We want them to come forward because we want to help, but at the same time, they must fulfil their responsibility to repay. So, to all borrowers, come forward and discuss because we are opening a path for them.
"There are those who get scared when PTPTN contacts them. Don't be afraid; we are ready to help all borrowers in a considerate and effective way so that they can repay their loans," she said.
Norliza also said PTPTN would take more stringent measures, including focusing on borrowers with arrears of over 10 years who have never made any payments.