PTPTN blacklist: burden or bonus?

Published by Afterschool.my on Sep 26, 2016, 11:22 am

Only RM8 billion has been repaid from a total of RM56.4 billion issued since 1997.


About 1.3 million borrowers of the National Higher Education Fund Corporation (PTPTN) will be listed under the Central Credit Reference Information System (CCRIS), in which it will affect the person's credit rating if they fail to pay their student loans on time.

Deputy Executive Director (Policy and Operation) for PTPTN, Mastura Mohd Khalid said, once listed in the CCRIS, a person's credit rating may be 'plunged' when a person is deemed not to have or show a good payment record.

This can lead to a financial institution taking steps to deny them loans or other credit facilities.

She added that all PTPTN borrowers will be listed under CCRIS as soon as the time comes for them to start making repayments, which is six months after graduation.

Since its inception, she said amost 1.2 million borrowers have either paid in full or have begun paying their loans.

In addition to using CCRIS, PTPTN borrowers can also be tracked by entering their names in the list of people banned from the Immigration Department for travel abroad, which began in 2008.

Up to now, 111,001 people have been barred from going abroad because they failed to make payment for their respective PTPTN loans.

Mastura said since implementation of the blacklist, 40 percent of the borrowers have voluntarily contacted PTPTN to renegotiate their repayment or to pay the outstanding amount.

In related news, the Minister of Higher Education, Datuk Seri Idris Jusoh gave a stern warning to the National Higher Education Fund Corporation (PTPTN) to avoid burdening borrowers in order to recover their debt.

However, he said borrowers should discuss in advance with PTPTN to find the best method or restructure their loan refunds to avoid persecution.

He said that according to research, the borrowers who fail to repay PTPTN loans, were not because they do not have money, but they are tied to installment loan payments, such as for housing, car or even personal loans.

"What is important, is that we must pay back what we owe. So if the borrower is unable to pay, their first step should be to discuss re-structuring of their loan with PTPTN.

"I have instructed PTPTN to avoid harming anyone (borrower). If there is any borrower who feel wronged, they can come see me personally and to provide complete information on which PTPTN representative which has done exactly that," he said.

In the meantime Idris also drew attention to the borrowers in order to cultivate an attitude of 'borrow and pay back' to ensure that they do not encounter difficulties with the loan provider.

He said since PTPTN implemented a variety of methods including loan repayment through payroll deductions on a monthly basis, the amount of repayment has been visibly increasing.

"In fact, PTPTN's aim to reach a collection of RM2 billion this year has already been succesful and until the end of this year it will increase up to RM3 billion.

"This shows that borrowers are increasingly aware of their responsibilities and this culture must be applied among other borrowers," he said.

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