The PTPTN (Perbadanan Tabung Pendidikan Tinggi Nasional) was initiated with the objective to provide financial assistance to students to pursue their education in local public and private universities, as well as polytechnics. Students who pursue their diploma, first degree, master’s degree, doctoral degree or professional courses are eligible to apply for these loans.
Between 1997 and 2015, 2,464,937 loans with an approximate value of RM55.83 billion were approved for students pursuing their higher education studies in Malaysia (PTPTN Annual Report, 2015). Another projected PTPTN’s funding requirement is to be around RM24 billion in the next 5 years or RM46 billion in the next 10 years. This is around 2.4% of the national debts of RM1 trillion debts and can go up to 4.7% in the next 10 years for the same debts. The average funding requirement is around RM4.5 billion to RM5.00 billion per year. This is especially in the backdrop of RM19 billion in receivable and more importantly a portfolio of RM8.1 billion in overdue or unpaid balances.