LENGGONG: The National Higher Education Fund Corporation's (PTPTN) decision to cut its loan amounts by 5% and 15%, will only affect approximately 200,000 students who received funds after Nov 1, 2014.
PTPTN chairman Datuk Shamsul Anuar Nasarah said some 400,000 existing borrowers, who have been receiving loans before Nov 1 this year, would not be affected.
"Parents and existing borrowers need not worry because PTPTN will honour our commitment. There will be no reduction in loan amounts given to those who received it before Nov 1," he told reporters after presenting PTPTN loans to 77 polytechnic students here Saturday.
The PTPTN had recently announced that, beginning Nov 1, the loan amounts for students of public institutions of higher learning (IPTA) had been reduced by 5%, and 15% for students in private institutions of higher learning (IPTS).
This was due to funding constraints caused by 50,000 new potential borrowers and loans not being paid by borrowers after completing their studies.
Meanwhile, Shamsul Anuar, who is Lenggong MP, said the move to list the first 173,985 PTPTN defaulters in the Central Credit Reference Information System (CCRIS) from Jan 1 next year was not an extraordinary move.
"We are firm on going ahead with the plan because we have taken into account all the aspects. We have sued and blacklisted errant borrowers from going overseas, but those actions didn't really work. CCRIS is a common practice for financial institutions," he said.
He said CCRIS was not a blacklisting system, but rather a system that collected a borrower's credit information and credit history.
"If an errant PTPTN borrower listed in the CCRIS wants to take up a housing or car loan from any bank or financial institution, the bank or the financial institution will refer to CCRIS for his of her data, and if he or she was found to have an unpaid PTPTN loan, he or she has to settle the debt first," he added. - Bernama
We're sorry, this article is unavailable at the moment. If you wish to read this article, kindly contact our Customer Service team at 1-300-88-7827. Thank you for your patience - we're bringing you a new and improved experience soon!