Umno Youth Chief Khairy Jamaluddin has defended the move to blacklist National Higher Education Fund (PTPTN) loan defaulters.
 
This follows PTPTN’s announcement that PTPTN loans will be included under the Central Credit Reference Information System (CCRIS) starting next year. 
 
Khairy said that although he opposed the move last year, he is now backing it after hearing an explanation from PTPTN. 
 
"This latest proposal by PTPTN makes sense. It's different if a fresh graduate, who has a hard time finding work, is made a target.
 
"But these (borrowers) were supposed to make repayments four years ago or before that, (but) have not done a single thing," he said in a statement on Facebook yesterday.
 
Khairy (left) said that unlike before, PTPTN’s new ruling will only affect those who graduated between 1998 to 2010, but failed to make a single payment.
 
This amounted to about 180,000 loan defaulters who collectively owe PTPTN RM1.2 billion. 
 
"(PTPTN) is worried, because when a borrower doesn't pay back his PTPTN loan, the fund to give loans to new applicants grows smaller.
 
"We have to remember that PTPTN is a rotation fund. If it is not repaid, future youths will not get the same benefits. We must be fair to them," he said.
 
Not a single sen
 
According to Khairy, PTPTN had reasoned that it is impossible for some debtors to say that they cannot afford to pay back a single sen despite graduating 14 years ago.
 
They told him, some debtors have become civil servants with permanent positions, but still do not make PTPTN repayments.
 
However, he said if the borrowers were really hardcore poor, PTPTN will make considerations.
 
As for the others, Khairy said even a payment of RM100 a month will get them off the blacklist, which prevents them from obtaining other loans. 
 
"PTPTN says that even that is enough, because at least these debtors come forward to make repayments after years of ignoring PTPTN's letters," he said.
 
Education Minister II Idris Jusoh earlier said that once the plan is announced, loan defaulters would be given three months to discuss ways for them to start paying their PTPTN loans.