KUALA LUMPUR: It is difficult for the government to write off the loans of National Higher Education Corporation Fund (PTPTN) defaulters as the government needed the money to continue financing the education of future students, the Dewan Rakyat heard today.
Deputy Higher Education Minister Datuk Mustapha Sakmud said the government also had to consider those who had met their study loan obligations.
"I believe the PTPTN issue has been a long-standing one, with all parties, including ours (the government) and those on the other side (the opposition), incorporating it into our manifestos.
"However, given the current situation, it is quite difficult to forgive (defaulters' loans) due to the government's significant commitments," he said during minister's question time in the Dewan Rakyat today.
Mustapha said RM76 billion had been repaid to PTPTN and the government needed this money to continue financing the studies of future students.
He added that the ministry was studying other financing models based on the country's financial performance.
Mustapha said this in reply to Sabri Azit (PN-Jerai), who asked about the possibility of targeted PTPTN loan forgiveness for the poor and B40 households.
Higher Education Minister Datuk Seri Zambry Abd Kadir had said PTPTN would take action against 430,000 borrowers who have never made payments, owing a total of RM6 billion.
He added that the irresponsibility of these individuals had put PTPTN's financial position at risk, noting that some defaulters graduated decades ago without making a single payment.
Meanwhile, Mustapha said the ministry and PTPTN were working with the Madani monitoring unit under the Finance Ministry to study a more efficient and sustainable financing model for PTPTN for the long term.
"PTPTN also reminds borrowers about their loan arrears and their responsibility to make payments.
"The fund also provides certain incentives to encourage borrowers to make payments, such as allowing borrowers to restructure or reschedule their loans according to their abilities."