THE government is mulling a review of the loan rates and repayment terms under the National Higher Education Fund Corporation (PTPTN) to better support borrowers and address the mounting burden of student debt, Prime Minister Datuk Seri Anwar Ibrahim said on Friday.
Speaking during a special homecoming dialogue session at the International Islamic University Malaysia (IIUM) in Gombak, Anwar — who also holds the Finance Minister portfolio — revealed that PTPTN’s outstanding debt has now climbed to nearly RM40 billion.
"And if we increase (the loan rate), (perhaps) it (the amount of loan) is going to be RM50 billion. For now, I see we just have to hold on. We will help students in terms of their needs, but I think we have to have the courage to revise," he told the audience of nearly 3,000 university students and staff.
Reiterating his earlier stance on fiscal equity, the Prime Minister floated the idea of a progressive funding model in which wealthier families contribute more towards education costs, thereby easing the financial pressure on lower-income students.
"I reiterate my earlier point that we can resolve this if we do, for example, tax the very rich. Those parents who are very rich should pay, then at least we can transfer that to the poorer students," he said.
The event, titled ‘Meet Anwar@IIUM: A Special Homecoming’, marked Anwar’s return to the university where he once served as a lecturer. Also in attendance were Selangor Menteri Besar Datuk Seri Amirudin Shaari and IIUM Rector Prof Emeritus Datuk Dr Osman Bakar.
The PTPTN loan scheme, introduced to widen access to higher education in Malaysia, has long been under scrutiny due to concerns over repayment difficulties and ballooning debts.
Calls for reform have grown in recent years as many graduates struggle to manage repayments amid rising living costs and employment challenges. – April 11, 2025
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