Factors affecting loan repayment among students in Malaysia / Nur Izzati Mohd Safee

Educational loan in Malaysia is very crucial because it gives opportunity for less fortunate people to pursue their study in higher education. As of 3 1st December 2016, PTPTN disbursed RM 45.8 billion to 2.6 million students. However, out of RMI 8.8 billion loan due, about RM8.1 billion still has not paid back yet. About 670,000 individuals with about RM4.8 billion in overdue loans whom PTPTN have never heard a peep since graduation. Because of this, PTPTN reduced amount of funding given to individual and it cause some people not able to pursue study in higher education because does not get funding,(Rahman,2017). This study was done to find the relationship between knowledge towards loan agreement, perception that loan may affect quality of life after graduation and attitude towards loan repayment towards loan repayment. The tool that were used to collect data is questionnaire that were distributed to 153 respondents consist of graduates from various type of higher education institution around Malaysia. Data was analysed using Statistical Package for Social Science (SPSS). Descriptive statistics were carried out to meet research objectives. Findings in this study indicate that knowledge have no significant relationship with loan repayment while attitude and perception does have relationship with intention to repay loan.