Why Do Education Loans Go Unpaid?

According to the Ministry of Rural and Regional Development, some 49% or almost 98,000 active loan borrowers have been blacklisted by Majlis Amanah Rakyat (MARA) for loan defaults. Some 430,000 PTPTN borrowers had also been blacklisted last month for nonpayment, which raises the question: why is the rate of nonpayment of education loans so high? We discuss the symptoms and potential remedies with Ahmad Yazid Othman, Senior Fellow, Majlis Tindakan Ekonomi Melayu (MTEM).

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