PTPTN arrears stand at RM10.7 billion across 1.16 million borrowers as of August

KUALA LUMPUR: Outstanding repayments owed to the National Higher Education Fund Corporation stood at RM10.7 billion across 1.16 million borrowers as of August 31, according to Higher Education Minister Datuk Seri Zambry Abd Kadir.

The figure was given in a written reply to Jelebu MP Datuk Seri Jalaluddin Alias in the Dewan Rakyat.

"The total outstanding loan repayments of the National Higher Education Fund Corporation as of August 31, 2026 was RM10.7 billion involving 1.16 million borrowers," he said.

That is down from RM11.06 billion owed by 1.2 million borrowers as of December 31, 2024. The decline has been attributed to enforcement measures reintroduced in October 2024.

What the ministry is doing

Zambry said several measures were being carried out or planned to strengthen loan management, including improving terms and conditions so that financing is better targeted at those in need, in line with the corporation's financial capacity.

Collection efforts will be stepped up through enforcement and strategic cooperation with government agencies and the corporate sector.

Borrowers in genuine financial difficulty can apply to restructure or defer their repayments.

What has not been explained

The RM10.7 billion figure does not show why borrowers fall behind.

The corporation's own guidance indicates that arrears can arise in several ways, including starting repayment later than the schedule requires or paying less than the monthly instalment. That means the 1.16 million borrowers are unlikely to be a single group.

Borrowers who cannot meet existing terms may apply to restructure, with monthly instalments recalibrated according to income and the repayment period extended subject to conditions. Those who are unemployed or continuing their studies may apply for deferment.

In July the corporation said some borrowers with arrears stretching beyond 10 years who still failed to come forward could be referred to debt consultation agencies.

Borrowers who are due to begin repayment are also reported to the national credit reporting system, and arrears can affect how financial institutions assess credit applications.

The corporation's challenge lies in balancing two risks. Weak enforcement can undermine the revolving pool of money available to new students, while collection that is too rigid without regard to income can squeeze lower-paid graduates.

A more detailed breakdown would clarify what is actually driving the arrears: how many borrowers are unemployed, how many are paying below schedule, and how much of the total is concentrated among long-standing defaulters.