Anwar said PTPTN’s outstanding debt has nearly reached RM40 billion to date and said increasing the loan rate may possibly increase that figure to RM50 billion.

“I see we just have to hold on for now. We will help students in terms of their needs, but I think we need the courage to revise (the rates and terms).

“I reiterate my earlier point that we can resolve this if we tax the very rich. Those parents who are very rich should pay (their taxes).

“At least we can then transfer (the money taxed) to poorer students,” Bernama reported him as saying at the International Islamic University Malaysia today.

Last month, deputy higher education minister Mustapha Sakmud said the government was considering bringing back the travel ban, among other measures, to boost loan repayments among PTPTN borrowers.

In January, PTPTN issued 2.1 million reminder notices to borrowers who had failed to repay their loans according to their set schedules.

About 13.55%, or 383,637 borrowers, were reported to have defaulted on their PTPTN loans at the end of last year.

The remaining borrowers have begun repaying their loans, with 585,638 repaying their loans consistently without any arrears and 817,872 paying inconsistently and with arrears.