Study Loan Defaults Among Tertiary Graduates

Abstract

Educational Loan is an alternative of financial aids that is provided by the study funding agencies of Malaysia to reduce the economic burden of students in order to finance their studies at tertiary education level. Despite the increasing number of students who obtaining these educational loans, the issue of default in loan repayment among borrowers merely needs research attention. Thus this study aims to investigate the factors of study loan default among Malaysia tertiary graduates. Among the factors examined are family income, employment status and loan amount while respondents’ age, gender, marital status and education level are controlled. Questionnaires were distributed to 430 Universiti Teknologi MARA, Johor, Malaysia graduated respondents via online and 209 were returned The result of this study revealed that the employment status, loan amount and education level are significant to study loan default among Malaysian tertiary graduates. The results could serve some highlights to any study financing agencies to further understand their borrower intuitions in paying back loans they owed.

Financial Aid of Higher Education in Malaysia: A Study Loan Case

“…CIMB Bank has disbursed RM10.6 million to 16 scholars to pursue undergraduate studies at reputable study institutions around the world as of December 2018. According to Petronas' 2018 Sustainability Report, more than 36,000 students worldwide received funding from the PETRONAS Education Sponsorship Programme (PESP), of which 387 students were awarded sponsorships in 2018, with 45 percent attending international universities and 55 percent attending Malaysian universities (Zakaria et al, 2020). A student loan is a critical financing tool for people, particularly students, who want to pursue higher education (Bertola and Hochguertel, 2007).…”

A Conceptual Review Of The Social Media's Role In Education Loan Repayment

“…There are still many students taking advantage of the situation by defaulting on their study loans, despite the efforts of the Malaysian government and agencies to provide funding for these tertiary students. The amount of money lent is being repaid much more slowly than expected as the number of borrowers increases (Zakaria et al, 2020). Of the estimated 80% of students who took out loans, approximately 50% defaulted (see www.ptptn.gov.my).…”