KUALA LUMPUR (Oct 6): Outstanding repayments for loans issued by the National Higher Education Fund Corporation (PTPTN), the country's main tertiary education loan provider, stood at RM10.7 billion as at Aug 31.

The arrears involving 1.16 million borrowers were disclosed by Higher Education Minister Datuk Seri Dr Zambry Abd Kadir in a written parliamentary reply on Monday.

He was responding to Jelebu MP Datuk Seri Jalaluddin Alias, who asked for the latest outstanding debt owed by PTPTN borrowers and the measures being taken to improve loan repayment collections.

Zambry said various measures are being taken to ensure the long-term sustainability of PTPTN’s funding model, including strengthening loan management by improving the terms and conditions to better target borrowers based on their needs and PTPTN’s financial capacity.

The government is also seeking to improve the effectiveness and efficiency of loan repayment collections through enforcement measures and strategic cooperation with government agencies and corporations.

However, Zambry said the government remains mindful of borrowers who are genuinely facing difficulties in making repayments.

He said borrowers in such circumstances could come forward for consultation and restructure their repayment schedules according to their ability to pay, or apply for a repayment deferment subject to the flexibility allowed by PTPTN.

Zambry also noted that PTPTN operates on a revolving-fund model, with repayments from borrowers who have completed their studies serving as its main source of funding for new higher education loans.

Any annual funding shortfall is covered through sukuk issuance or loans from local financial institutions, backed by government guarantees.

For more Parliament stories, click here.