KUALA LUMPUR – The National Higher Education Fund Corporation (PTPTN) has decided to reduce the amount of funding for students in higher learning institutions due to lack of funds as many borrowers fail to make repayment on schedule.
Its chairman, Datuk Shamsul Anuar Nasarah, said PTPTN required RM5 billion annually to provide loans to students in higher learning institutions, and the unsatisfactory repayment performance had affected its funds.
“This is the effect when many borrowers do not repay their loans,” he added.
He said the total PTPTN loan repayment received up to Aug 31 this year was RM5.37 billion or 45.62 per cent, while the actual amount that the corporation should receive was RM11.77 billion.
“The number of borrowers who have never made repayment for their loans is 552,638 people, involving RM4.21 billion,” he told Bernama here.
Shamsul Anuar was commenting media reports on the PTPTN loan cut of 5 per cent for students in public institutions of higher learning and 15 per cent for those studying in private institutions of higher learning which came into force last Saturday.
Meanwhile, Penang Chief Minister and Bagan Member of Parliament, Lim Guan Eng, urged the government to review the decision in slashing the quantum of the PTPTN loans.
“With the rising cost of living, they should increase the loan amount or maintainÂ the current rate,” he told a media conference at the Parliament lobby today. – BERNAMA