INTRODUCTION. Since education loan were introduced by various agencies in order to provide financial assistance to students who faced financial difficulties to pursue their study in higher learning institutions. It has created the situation whereby students were not graduated with diplomas or degrees but also with the debts. Due to that, graduates with debts become a serious issue especially when economic difficulties happen nowadays. The purpose of this study is to determine which elements (attitude, subjective norms and perceived behavioral control) that influence potential payers’
intention to make a loan repayment after graduated and employed.
METHOD. The study used primary data from 394 students from Faculty of Administrative Science and Policies Studies in UiTM Seremban and UiTM Samarahan
were collected and analysed. There were three (3) main constructs from Theory Reasonable Action and Theory of Planned Behavior have been identified and used in this study: Attitudes (information, quality of life and mismanagement); Subjective norms (friends influence, parental influence, media influence) and Perceived behavioral control. The study utilized correlation and multiple regression analysis to test six (6)
hypothesis developed in the study.
RESULTS. Perceived behavioral control and attitude are the key predictors that explain the intention to payback the education loan. On the other hand, social influence (subjective norms) has no relationship with intention to repay education loan after graduated and employed.
CONCLUSION. Intentions to repay education loan is strongly influenced by personal factors (attitude and perceived behavioral control) which indicated that each potential individual player has the power and control over their decision to pay back the education loan. In addition, the loan provider institutions either private or public financial agencies such PTPTN may enhance their ability to collect payments from borrowers by improving the management and monitoring of the potential payers through effective information management.
