IPOH: The National Higher Education Fund Corporation (NHEFC) is offering a record RM2bil in study loans this year, said its chairman Datuk Ahmad Husni Hadnazlah.

He said the allocation would be used to continue financing the fees of students already enrolled in 18 public universities and nearly 300 private universities and colleges.

In addition, he said, over 100,000 new students were expected to benefit from this year's allocation.

"The RM2bil allocation is the biggest we have offered since the setting up of the fund in 1997.

"In the past, the corporation had allocated only about RM1.5bil yearly," he said yesterday after opening a state education seminar organised jointly by NHEFC and Perak Foundation.

Ahmad Husni said the amount was increased this year to ensure all qualified students would be successful in obtaining loans.

He said at least 40% of students in public and private institutions of higher learning had taken loans from the fund, adding that only a small percentage had applications rejected.

The corporation, he added, had taken steps to prevent disbursement delays by setting up counters in all public and private universities on registration days.

On repayment, Ahmad Husni said almost all students were paying according to the loan agreement.

"Although not 100% pay on time, we are quite satisfied with the repayment rate so far," he said.

Under the agreement, he said students were required to start repaying six months after completing their studies, with payments made over 10 to 20 years.

The Government had agreed to allow unemployed graduates to delay repayments by up to three years, he added.