National Higher Education Fund (PTPTN) loan defaulters will soon be blacklisted under the Central Credit Reference Information System (CCRIS).

The move will be implemented from next year, Berita Harian reported today.

The system, which was established by Bank Negara, will block loan defaulters from applying for loans from other financial agencies.

This includes applications for personal loans, credit cards, houses and cars.

The move will kick-start with efforts to recover funds worth RM1.2 billion from 170,000 loan defaulters who have never made any payment from 1998 to 2010.

This is to recover PTPTN’s funds, which have witnessed a serious depletion over the years.

Meanwhile, Education Minister II Idris Jusoh ( left ) said the 170,000 loan defaulters would be given a chance to discuss ways for them to pay their loans before their names are blacklisted under the CCRIS.

‘When we announce the move soon, we will give them three months to discuss and make payment before their names are listed under CCRIS,” Idris was quoted as saying by Bernama .

“We have their information and we know that some of them are paid handsomely. But they never go to PTPTN to discuss matters or make any payment.”