Low repayment rate of educational loan affects the country’s Gross Domestic Product. Lack of educational loan repayment among the borrowers’ put the government financial in the risky position. The problem of low educational loan collection cannot be simply done through formulate and implement new repayment scheme. It is important to understand the practices that have been used in recovering the educational loan, the cause of problems, the grassroots and the background of the problematic borrowers’ and mechanisms to improve the educational repayment rate. This study aims to determine Factors Influencing Educational Loan Repayment Intention from the Perspectives of undergraduates’ student at Higher Education Institution. The sample size of the study is 327 respondents and questionnaires has been distributed among the Institute Professional Baitumal students by using stratified sampling technique. There is four independent variables in this study which attitude, parents’ income, debt composition and lifestyle after graduate. The study found that there was a positive relationship between student’s attitude, parents’ income and debt composition with the intention to pay. There is a significant difference between gender and intention to pay the loan. This study may influence the educational loan provider in Malaysia (NHEFC) to come out with more systematic repayment scheme. The current repayment scheme should be adjusted to reduce the burden of fresh graduates in the same not too lenient. A program or seminar should be conducted at all level and involves all parties to create public awareness on the importance of paying the educational loan.
