The National Higher Education Fund Corporation (PTPTN) will not declare bankrupt those who fail to repay their loans.

PTPTN chairperson Ismail Mohamed Said said the corporation did not intend to use bankruptcy as a last resort on debtors as the existing methods were adequate.

“The final step is blacklisting them with the Immigration Department so they cannot go abroad. This is seen to be effective when they are prepared to discuss and settle their loans,” he told reporters after opening a Jenderak state assembly constituency mini-carnival in Kuala Krau, near Temerloh, today.

Ismail, who is also the Kuala Krau member of parliament, said bankruptcy could not be declared because their loans were below RM30,000 as stipulated under the Bankruptcy Act.

He said most of the loans were between RM15,000 and RM25,000.

Meanwhile, Ismail said the PTPTN had approved loans totalling RM42.35 billion to 1.9 million students as of last October.

He said during the period, 999,689 people needed to pay back loans totalling RM6.27 billion, but only 730,221 did so involving a total of RM2.80 billion.

- Bernama