115 loan defaulters charged, 'thousands' to follow
The National Higher Education Fund (PTPTN) will take several thousands of former students to court over their failure to settle their study loans.
Contacted today, PTPTN chief executive officer Yunos Abdul Ghani said these students had not settled their debts despite three legal notices being issued.
"Students from the 1997-2004 batch will face court action for failing to pay their loans following a (third) legal notice being sent to them," he added.
He said the former students who received the third legal notice were required to settle their debts within two weeks.
Yunos reiterated that those who cannot afford to do so should come forward and explain their situation. He said they should provide valid evidence and logical reasons.
Declare bankrupt
As for those who did not receive the legal notices, he said these students should get in touch with the PTPTN.
"For instance, if they have changed their address, they should have inform us about it, because it is their duty to inform us, if not we will never know," he added.
He said those who did not receive the legal notices must settle their debts or face legal action as well.
Meanwhile, Nanyang Siang Pau reported yesterday that 115 students had been charged in court over this issue.
Yunos said PTPTN will consider having those who still refuse to pay as being declared bankrupt but stressed that it would be the last resort.
About RM600 million was loaned out to the first batch of students in 1997 and of this only RM270 million has been successfully collected from these students.
As for the overall figures, Yunos said PTPTN is still processing this.
The financial aid programme was established in 1997 and is mainly focused on students who have gained admission to local universities but are unable to further their studies due to financial constraints.
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