A review on the current penalties against the National Higher Education Fund Corporation (PTPTN) defaulters / Akmal Nadia Abdul Jalil, Nina Alyssa Zainal Abidin and Nor Shazwani Abdullah

This Research Paper with the title of a Review on the current penalties against the National Higher Education Fund Corporation (PTPTN) defaulters mainly about the issues on current punishment imposed by the organization towards its loan defaulters. National Higher Education Fund Corporation (PTPTN) loan is the major source of financing tertiary education in Malaysia. Non-repayment of the loan among university students after they have graduated becomes a major problem to the government since the total amount of loan available to the students is depended on the loan repayment. This study sought to examine the legal aspect on the current penalties imposed towards the defaulters regarding the educational loan. Three aspects of focus are legality, effectiveness and the relevancy of the penalties towards students and the repayment of the loan to PTPTN. This study also analyzed the alternatives methods that are relevant in achieving the objective of collecting the repayment that could be adopted by the PTPTN. In the course of completion of this paper, case study method as well as further consultation and an intensive study on the PTPTN act is our main methodology apart from internet research. The findings revealed that the current penalties have many rooms for improvement in order to give more benefit towards the repayment of the loan as well as educating society at whole and not merely as punishment because majority of students perceived the loan as a burden to them and it limits many options of their life after graduation.