PTPTN left with little choice.
SUNGAI PETANI: Students who defaulted on their study loans given by the National Higher Education Fund Corporation (PTPTN) will soon be brought to court for refusing to repay their loans.
According to PTPTN director Datuk Tajul Urus Md Zain, the corporation had no choice but to turn to court action since 104,083 students had defaulted on their payment from 2007 to last September 30.
The courts have issued summonses to 69,573 who are regarded as stubborn defaulters.
"We have no choice but to take stern action since these are defaulters who have refused to pay up despite many reminders and requests," he told reporters after opening a community programme here Friday.
Tajul said thus far PTPTN has received RM2.7 billion from 725,000 borrowers, dating back from 1997 to last month, while the actual amount that should have been collected was RM 5.6 billion. This means only 77 per cent of the 937,000 borrowers have paid.
As of last Sept 30, PTPTN had approved RM4.16 billion to 172,134 recipients.
PTPTN senior manager for investment Tuan Din Tuan Mat said the Skim Simpanan Pendidikan Nasional (SSPN) had received very positive response.
The corporation has targeted RM60 million from SSPN savings this year and is confident of achieving the figure since the response has increased by 100 per cent. -- Bernama