Forty-nine per cent of the 3,675 recipients of educational loans from the Social Security Organisation's (Sosco) failed to pay up, said Human Resource Minister Datuk Dr S. Subramaniam.
He said Socso issued education loans totalling RM95 million to children of contributors since introducing the facility in 1997 where the interest rate was only four per cent per annum.
"Since February, the interest rate was lowered to only two per cent per annum to help more children of contributors gain higher education," he said after handing cheques to 23 recipients of Socso's benefits, here today.
He said that also from February, Socso had capped the education loan amount at RM100,000 per recipient.
He added that Socso was resorting to various measures to get the defaulters to pay up including approaching the Finance Ministry for instituting compulsory salary deductions and that going to the courts to recover the money was the last option .
He said Socso issued education loans totalling RM95 million to children of contributors since introducing the facility in 1997 where the interest rate was only four per cent per annum.
"Since February, the interest rate was lowered to only two per cent per annum to help more children of contributors gain higher education," he said after handing cheques to 23 recipients of Socso's benefits, here today.
He said that also from February, Socso had capped the education loan amount at RM100,000 per recipient.
He added that Socso was resorting to various measures to get the defaulters to pay up including approaching the Finance Ministry for instituting compulsory salary deductions and that going to the courts to recover the money was the last option .
