PTPTN considering bringing back travel ban for defaulters
The Higher Education Fund Corporation (PTPTN) is considering a proposal to bring back travel bans for loan defaulters.
In a media briefing today, the PTPTN management said it was also looking at several other options to improve study loan repayments...
The Higher Education Fund Corporation (PTPTN) is considering a proposal to bring back travel bans for loan defaulters.
In a media briefing today, the PTPTN management said it was also looking at several other options to improve study loan repayments.
According to PTPTN deputy CEO Mastura Mohd Khalid, this includes a proposal to bar defaulters from renewing their passports, driving licenses, road tax and business licenses.
The travel ban was part of a 10-point proposal presented to PTPTN during a series of stakeholder engagements that kicked off in December last year.
Among the other recommendations are for the corporation to impose mandatory pay deductions, stricter enforcement, and a guarantor system.
'Most effective method'
As Mastura (right in photo) told reporters, the travel ban has thus far been PTPTN's most successful method to recover loans from defaulters.
"More than two-thirds of PTPTN defaulters started repaying their loans after we imposed the travel ban.
"From one million defaulters, 684,000 of them made repayments leaving only some 332,000 who did not," she said.
"However, this method was stopped as it created an inconvenience, as defaulters were stopped (from leaving the country) at exit points.
"Now, (among the) suggestions we received are for PTPTN to instead impose bans on defaulters on renewing their passports or driver's licenses and vehicle road tax, to even making their names and photos public, and banning their next-of-kin from taking PTPTN loans."
Public feedback
In June last year, PTPTN chairperson Wan Saiful Wan Jan announced the lifting of the travel ban, with all 429,945 blacklisted names cleared with the help of the Immigration Department.
Abolishing the blacklisting policy for defaulters was among Pakatan Harapan's manifesto pledges for the 14th general election. It also promised to defer repayments for borrowers who earned monthly salaries of below RM4,000.
As Wan Saiful (photo) said today, the corporation was starting to gather feedback on the proposals they have received, and will present these to the cabinet for a final decision.
He also welcomed all Malaysians to put in their suggestions through the Konsultasi Rakyat online survey from today to June 13.
"During engagement sessions (with stakeholders), there were discussions on the effectiveness of the travel ban.
"There were also views that action should be continued against hardcore defaulters to ensure that they would be more responsible," he said.
"However, we take the middle ground in this consultation. We will gather all the ideas from the people and then the government will make the decision.
"If this (travel ban) idea is also what we get through Konsultasi Rakyat, we will bring it up to the cabinet," he added.
In her presentation today, Mastura walked the media through the history of PTPTN and a projection of its financial situation.
She said the corporation had disbursed a total of RM56 billion as of February this year, but has only collected some RM8.4 billion from borrowers so far.
They expect that in 20 years, PTPTN would be shouldering some RM76 billion in disbursed loans.
"This means that PTPTN might no longer be able to disburse loans. Or maybe even cease to exist," she said.
Mastura stressed that if this were to happen, among its blowbacks would be the rakyat having to depend on private financial institutions for study loans, with fewer students being able to secure financing.
Report this comment
Are you sure you want to delete this comment?
This action cannot be undone.