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Published by Afterschool.my on Nov 04, 2014, 04:00 pm
Faced with financial constraints, the National Higher Education Fund Corporation (PTPTN) will be reducing allocations next year.
For years, most Malaysian students rely on study loans to get themselves a better education. As the cost of tertiary education continues to soar, study loans that have easy instalments, such as PTPTN are always welcome. Students who finish with first class honours are rewarded by converting the loanable amount to scholarship money, while the rest are expected to pay in instalments with a 1.00% interest per annum.
PTPTN has had problems with its debt collection system over the years, and has enforced incentive programmes to encourage repayment. Still, these efforts were not enough and they have finally decided to reduce the amount of funding for students in higher learning institutions (HEIs). The move will allow 50,000 more students to get financing, and will affect those in the November and December intake.
According toPTPTN, there are 552, 638 people, involving RM4.21 billion, who have never made payment for their loans. As of August 31, the government agency has collected RM5.37 billion or 45.62 per cent. More awareness campaigns will be launched to encourage defaulters to settle their debt.
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