PTPTN to Take Legal Action Against 430,000 Borrowers Owing RM6 Billion

By Loshinniy Nair S. Baskaran,

22nd September 2024: The National Higher Education Fund Corporation (PTPTN) is set to initiate legal action against 430,000 borrowers who have failed to repay their loans, with the total outstanding amount reaching RM6 billion.

PTPTN chairman Datuk Kamal Nasir Kassim stated that the decision to pursue legal measures was made after extensive efforts to encourage repayment had not yielded significant results.Kamal Nasir emphasized that borrowers have been given ample time and opportunities to repay their loans, including various incentives and payment plans.

Despite these efforts, a large number of defaulters have not come forward to settle their debts. The legal action aims to ensure accountability and recovery of the funds, which are crucial for sustaining the PTPTN loan program and supporting future students in need of financial aid.

Borrowers are urged to take this warning seriously and to make arrangements with PTPTN to avoid facing legal consequences. The corporation has reminded borrowers that repayment is essential to ensure that the fund can continue to provide assistance to other students pursuing higher education.

PTPTN has also highlighted that flexible repayment options are still available, and borrowers are encouraged to come forward before legal action is enforced.

The corporation remains committed to helping borrowers manage their repayments but stressed that legal action will be a last resort for those who continue to default on their loans, as stated in The Star.