Inconsistent to blacklist PTPTN loan defaulters and not others, says Teo

KUALA LUMPUR: It is unfair to blacklist education loan defaulters when other loan borrowers only face a similar fate in the event of bankruptcy.
Deputy Education Minister Teo Nie Ching (pix) said this inconsistency by the previous government led Pakatan Harapan (PH) to remove over 400,000 National Higher Education Fund Corporation (PTPTN) loan defaulters from the blacklist.
She added that the decision was in line with the coalition's election manifesto as well as to provide freedom of movement to all citizens as part of their rights.
"If you look at those who loan from banks, borrowers are not blacklisted if they stop paying or are inconsistent in their repayments," she said during the question and answer time in Parliament here today.
"They only get blacklisted if they go bankrupt. The government can't just blacklist PTPTN defaulters simply because they can. This is unfair to the (PTPTN) borrowers."
PTPTN and the Immigration Department had between May 24 and June 8 removed 429,945 names from the immigration blacklist, with the "whitening" process as part of the PH's "10 promises in 100 days" pledge.
The coalition had in its manifesto promised to remove PTPTN defaulters from the blacklist that bars them from leaving the country. It allowed borrowers to defer repayment until they earn at least RM4,000 a month.
Teo said PH would also continue with the previous government's practice of giving a 20% discount to those who fully settle their loans, 10% discount to those who settle half of what they owe, and a 10% off to those who pay back via salary cuts or direct debit according to schedule.
She said this is to encourage borrowers from continuing their repayments despite being eligible for deferment.