DETERMINANTS OF BORROWER’S INTENTION TO REPAY THE EDUCATIONAL LOAN (PTPTN): PLS-SEM METHOD

Abstract

Educational loan is an alternative financial assistance provided by the government to reduce the economic burden of students at tertiary level throughout their studies. In view of the increasing number of students obtaining educational loans, the issue of default in loan repayment is undoubtedly subjected to research attention. This study investigates the determinants of borrower’s intention to repay PTPTN loan. Using questionnaire and partial least squares (PLS) structural equation model, this study examines the relationship between roles of media, human interaction, and attitude of borrower and repayment alternatives that influence the borrowers’ intention to repay the loan. The results show that borrower’s attitude, awareness from media and repayment alternatives influence the borrower’s intention to repay PTPTN loan. The results obtained from this research hopefully will help PTPTN and policymakers to develop better strategies to ensure the repayment conditions would not become a burden to both government and the public