Repayment of National Higher Education Fund Corporation (PTPTN) Loans-Factor Influencing Graduates

Abstract

In many countries, education loan is provided as a primary source and alternative financial assistance by their government in order to reduce the financial burden of students at various level throughout their studies. In Malaysia, National Higher Education Fund Corporation (PTPTN), that provides education loans for students has made national headlines in the past years for low repayment rates from its borrowers. Thus, the issue of low repayment rates by borrowers is undoubtedly subjected to research attention. This paper examines the factors influencing graduates repayment of National Higher Education Fund in Penang, Malaysia. Data for this research was collected via online structured questionnaires which were completed by 118 graduates from Penang who received their education loan from the National Higher Education Fund (PTPTN). The collected data were then quantitatively analyzed using multiple regressions. The analysis showed a negative relationship between the factors influencing graduates repayment of education loan which is media influence, borrowers’ attitude, affordability and incentives towards loan repayment.