400,000 Malaysian Borrowers Default On RM5 Billion PTPTN Student Loans – No Payments After 10 Years

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Remember when your mom said, “Always pay back what you borrow”?

Well, 400,000 Malaysian borrowers apparently skipped that life lesson and decided to keep RM5 billion of taxpayer money instead.

Here’s what happened: The government provided student loans through the National Higher Education Fund Corporation (PTPTN) to help students attend university.

Nice. Except 400,000 of these “educated” people decided that paying back their loans was optional, like wearing masks or using turn signals.

Instead? It’s gone. Vanished.

These individuals took the money, obtained their degrees (or not), secured jobs, and then ghosted the government, much like a bad Tinder date.

The “I’m Too Good to Pay Back” Club

The craziest part? Higher Education Minister Datuk Seri Dr Zambry Abd Kadir said some of these people have been working for 10 YEARS and haven’t paid back a single cent.

Not RM1. Not even 50 sen for a phone call to say “sorry, running late on payments.”

Ten years! That’s enough time to:

But paying back their student loan? Nah, too busy apparently.

The Math is Simple (Unlike These People’s Morals)

To ensure borrowers can manage their finances effectively, a progressive repayment system is applied.

Borrowers pay between 2% to 15% of their monthly salary towards PTPTN loan repayments, depending on their income level.

But these 400,000 looked at that amount and said, “You know what? I think I’ll keep this money for myself instead.”

While these people are living loan-free, guess who’s covering their unpaid debts?

You. Me. Every Malaysian who pays taxes and follows the rules like some kind of sucker.

The Government’s Brilliant Response: “Pretty Please?”

And what’s the government doing about this RM5 billion heist? Offering MORE flexibility – more chances to maybe, possibly pay back what they owe.

While these 400,000 are enjoying their free education, other students can’t get loans because there is no money left.

In a way, these defaulters stole opportunities from future students who actually need help.

Some critics have blamed Prime Minister Datuk Seri Anwar Ibrahim for this mess, pointing to his past promises to abolish PTPTN during election campaigns.

To be fair, Anwar emphasised that PTPTN repayment exemptions would apply to low-income students, regardless of race, who genuinely couldn’t afford to repay their loans.

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