Norliza said it was not acceptable for retirees to still owe PTPTN, which recorded RM11.32 billion in loan arrears involving 1.25 million defaulting borrowers as of September 2024, Berita Harian reported.

She said it was important for borrowers to repay their loans so that PTPTN can continue giving out education loans as the corporation needs about RM3 billion a year to cover the 450,000 existing borrowers in universities and 150,000 new borrowers every year.

“PTPTN must continue to have sufficient funds to meet this demand (for higher education loans) annually,” she said.

In September, higher education minister Zambry Abdul Kadir said 430,000 PTPTN borrowers have never made a single repayment to the corporation alhough some of them have long established careers.

Norliza said PTPTN had held an in-depth study to understand why borrowers fail to make their loan repayments, with some attributing it to unemployment and health issues, while others simply not making it a priority.

“This is unfair to borrowers who are responsible and committed to repayments. Many of them come from less privileged families. PTPTN is at risk because of borrowers who fail to fulfil their responsibilities.

“They need to understand that the opportunity to pursue higher education (through PTPTN loans) also carries a responsibility (of repaying the loans) to ensure future generations receive the same opportunity.”

She maintained that PTPTN would take an empathetic approach towards borrowers facing economic challenges, saying the corporation was ready to assist and negotiate with all borrowers in repaying their loans.

She added that PTPTN may first focus on getting borrowers who have yet to make a single repayment in 10 years to pay up.