PTPTN loan arrears reach RM10.7 billion – KPT

KUALA LUMPUR, 7 OCTOBER 2026 —

Kuala Lumpur – The outstanding loan balance of the National Higher Education Fund Corporation (PTPTN) reached RM10.7 billion, covering 1.16 million borrowers as at 31 August, the Ministry of Higher Education (KPT) said in a written reply to Parliament on Friday.

KPT explained that the terms and conditions of PTPTN loans will be reviewed to make financing more targeted toward borrowers who need it, taking into account PTPTN’s financial capacity. “PTPTN also will enhance the effectiveness and efficiency of loan‑repayment collection through enforcement actions and strategic cooperation with government agencies and corporate firms,” the ministry said in the parliamentary response.

The ministry’s comments were made in answer to a question from Datuk Seri Jalaluddin Alias of Barisan Nasional, Jelebu, who asked for the latest figures on PTPTN borrowers’ debt and for details of steps being taken to improve repayment. KPT reiterated that while it is focused on the fund’s fiscal health, it remains “concerned about the welfare of borrowers who are genuinely facing difficulty in repaying their loans.”

To address borrowers experiencing genuine hardship, KPT said those in the affected category are encouraged to negotiate restructuring of their repayment schedules in line with their individual financial circumstances. The ministry also noted that borrowers may apply for a deferment of payments, subject to the flexibility permitted under PTPTN’s policies.

The ministry’s statement highlighted that the enforcement measures will be complemented by partnerships with other government bodies and private sector entities, though it did not specify the nature of those collaborations. By tightening collection mechanisms and refining loan terms, KPT aims to reduce the arrears while preserving access to higher‑education financing for eligible students.

KPT’s response did not disclose any changes to the interest rates or the introduction of new repayment schemes beyond the restructuring and deferment options already mentioned. The ministry’s emphasis on “strengthening loan management” and “enhancing collection efficiency” suggests a focus on administrative and procedural improvements rather than policy overhauls.

The announcement comes as PTPTN’s debt level continues to be a focal point for policymakers, given its impact on the broader education financing landscape. While the ministry did not provide a timeline for the review of loan terms, it indicated that the process will be undertaken to ensure that disbursements are more precisely aligned with borrowers’ financial needs and PTPTN’s capacity to fund them.

In its written reply, KPT affirmed that the agency will maintain a balance between fiscal responsibility and borrower support, signalling that future actions will be guided by both the fund’s sustainability and the socioeconomic realities of its borrowers. The ministry’s statements conclude with an invitation for borrowers in difficulty to engage with PTPTN for possible restructuring or deferment, underscoring the agency’s willingness to accommodate genuine hardship within the framework of its revised policies.

Related: Ministry of Higher Education (KPT) · Datuk Seri Jalaluddin Alias · Kuala Lumpur