Higher Education Minister Idris Jusoh said the target was achievable based on PTPTN’s collection of RM3.4 billion last year, despite the original target of only RM2 billion.

“The increase is due to improvements made and PTPTN’s ‘willing to discuss’ approach that has been implemented since March.

“Now, 284,210 blacklisted borrowers have paid off their entire loan,” he said at the Dewan Rakyat today.

Idris said this in reply to a question from Noor Azmi Ghazali (BN-Bagan Serai) on the ministry’s efforts to address the issue.

He said PTPTN had also upgraded the loan system by allowing students to merge loans taken during their diploma and undergraduate degree programmes, and they only need to service the loan six months after they graduate.

“This means that if their diploma loan is RM15,000 and for the degree it’s RM21,000, the total loan amount is RM36,000, and the two loans are combined into one.

“Therefore, they will no longer have a problem with financial institutions and the Immigration Department, or be subject to legal action,” he said.

To reduce dependency on PTPTN loans, Idris said the fund encouraged parents to save money for their children through the National Education Savings Scheme (SSPN-i), which has special privileges, including higher dividends, tax relief and takaful protection.

As of July 31, more than three million SSPN-i savings accounts have been opened, with deposits amounting to RM2.8 billion.