Blacklisting does the trick

ABOUT 60% of the National Higher Education Fund Corporation (PTPTN) borrowers who were blacklisted by the Immigration Department have come forward to either negotiate payment or settle loans.

Deputy Higher Education Minister Datuk Mary Yap said a total of RM1.84bil was collected by PTPTN as a result of the blacklist.

“The amount could cover the studies of about 76,000 students,” said Yap in reply to Datuk Dr Mohd Khairuddin Aman Razali (PAS-Kuala Nerus), who asked to state the procedures in blacklisting individuals who failed to repay their PTPTN loan after completing their studies.

Yap said the measure to blacklist errant borrowers was not meant to punish or pressure them but merely to educate them to be more responsible with their payments.

She said this would also help the borrowers to ease their burden in the future.

Blacklisting, said Yap, was used as a last resort.

This comes after PTPTN had exhausted all other options such as sending notices, reminders and giving borrowers a grace period.

“PTPTN has many options for the borrowers to prevent them from being blacklisted by the Immigration Department.

“Among them include allowing room for discussion on ways to restructure their repayment, or reducing their monthly instalment by restructuring the loan based on their ability to pay up to the age of 60, or to postpone repayment by up to 24 months if the person is still unemployed,” said Yap.

To a supplementary question by Mohd Khairuddin, Yap said youths determine the country’s future; as such they must be responsible for their actions.

Mohd Khairuddin said it was unfair to burden young graduates as some were still unemployed.

“It is a universal principle related to integrity; if you borrow, you must pay back,” said Yap.