RM1m collection per day following PTPTN's threat

KUALA LUMPUR: The National Higher Education Fund Corporation's (PTPTN) threat to blacklist loan defaulters, as well as its discount incentive, seem to be working as it is now seeing more borrowers settling their long outstanding loans.
PTPTN, which is owed some RM7 billion by loan defaulters, is recently seeing better repayments to the point that average daily collections are now over RM1 million per day.
This follows the government's decision to have hardcore PTPTN loan defaulters listed on the Central Credit Reference Information System (CCRIS) beginning next year.
In presenting Budget 2015, Prime Minister and Finance Minister Datuk Seri Najib Abdul Razak had announced a 20% discount for those who pay up their PTPTN loan in full, and a 10% discount for those who pay regularly for a year.
PTPTN has been having problems getting the borrowers to pay their outstanding loans despite repeated reminders and notices issued to them.
As of Sept 30, PTPTN was able to collect only RM5.4 billion of about RM12 billion that was to have been paid back.
Deputy Prime Minister Tan Sri Muhyiddin Yassin, who is also education minister, said today, the government agreed to have hardcore defaulters listed on CCRIS beginning next year to educate and make them more disciplined and responsible in paying their debts.
"Based on records as of Oct 1, some 173,985 hardcore defaulters have not repaid their loans for the 1999-2010 period, estimated at RM1.23 billion," he said, adding that besides the discount incentive announced, defaulters are also allowed to reschedule their payments by extending the period of repayment up to age 60.
Meanwhile, Second Education Minister Datuk Seri Idris Jusoh said it is important for those who have borrowed from PTPTN to repay the money, so that others can benefit from the scheme.
Speaking to reporters after launching the "OUM e-learning Innovation Ceremony" at a hotel in Kuala Lumpur, he said PTPTN has been very flexible on repayment and those who face affordability issues in paying up their loan can negotiate for easy payment plans.
"We would like to ensure that PTPTN is a continuous facility for students to pursue higher education," said Idris, adding that the government is allocating a further RM1.3 billion to PTPTN's revolving fund for next year so that more students can have the benefit of higher education.
It is understood that PTPTN is committed to giving out a total of RM48.7 billion to 2.1 million students who have applied for study loans.