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Knowledge, Attitude and Perceptions of University Students towards Educational Loans in Malaysia

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  • Elistina Abu Bakar
  • Jariah Masud
  • Zuroni Md Jusoh

Abstract

National Higher Education Fund Corporation (PTPTN) loan is the major source of financing tertiary education in Malaysia. Non-repayment of the loan among university students after they have graduated becomes a major problem to the government since the total amount of loan available to the students is depended on the loan repayment. This study sought to examine the students’ knowledge and attitude regarding the loan. Three aspects of focus are knowledge, attitude and perception of students towards the loan and the repayment of the loan. This study also analyzed the legal literacy of students towards the PTPTN agreement. A total of 1,500 students of University Putra of Malaysia participated in the study and data were collected using self-administered questionnaire. The findings revealed that students have good knowledge about PTPTN loan agreement but there were a significant proportion of students with negative attitudes towards the repayment of the loan. Majority of them perceived the loan as a burden to them and it limits many options of their life after graduation. Copyright Springer Science+Business Media, Inc. 2006

Suggested Citation

  • Elistina Abu Bakar & Jariah Masud & Zuroni Md Jusoh, 2006. "Knowledge, Attitude and Perceptions of University Students towards Educational Loans in Malaysia," Journal of Family and Economic Issues, Springer, vol. 27(4), pages 692-701, December.
    • Handle: RePEc:kap:jfamec:v:27:y:2006:i:4:p:692-701
    DOI: 10.1007/s10834-006-9035-6
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    References listed on IDEAS

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    1. Catherine M. Millett, 2003. "How Undergraduate Loan Debt Affects Application and Enrollment in Graduate or First Professional School," The Journal of Higher Education, Taylor & Francis Journals, vol. 74(4), pages 386-427, July.
    2. Livingstone, Sonia M. & Lunt, Peter K., 1992. "Predicting personal debt and debt repayment: Psychological, social and economic determinants," Journal of Economic Psychology, Elsevier, vol. 13(1), pages 111-134, March.
    3. Walker, Catherine M., 1996. "Financial management, coping and debt in households under financial strain," Journal of Economic Psychology, Elsevier, vol. 17(6), pages 789-807, December.
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    Cited by:

    1. Nor Balkish Zakaria & Muhammad Rasyid & Norazida Mohamed & Dalila Daud & Aida Maria Ismail, 2020. "Study Loan Defaults Among Tertiary Graduates," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(3), pages 125-130, June.
    2. Travis P. Mountain & Namhoon Kim & Michael S. Gutter & Elizabeth Kiss & Soo Hyun Cho & Carrie L. Johnson, 2020. "An Exploration of Gender Bias, Framing, and Student Loan Decisions Through an Experimental Design," Journal of Family and Economic Issues, Springer, vol. 41(2), pages 350-363, June.
    3. Honggao Cao, 2008. "Credit Constraints and Human Capital Investment in College Education," Journal of Family and Economic Issues, Springer, vol. 29(1), pages 41-54, March.

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