BEGINNING this month it will be mandatory for all civil servants who have outstanding study loans with the National Higher Education Fund Corporation (PTPTN) to make payments via salary deductions.
It is high time that PTPTN be stern in its efforts to recoup the loans disbursed. This could be the best method taken by the lender to force its borrowers to own up and pay what is owed.
To the borrowers, this may be an unkind cut by the corporation to take such a drastic measure but it is the only way it can recover the outstanding loans.
Guarantors are not needed when students apply for the PTPTN loans or they would have become victims of inconvenience.
The loan defaulters would definitely not like the idea of a salary deduction but what the corporation is doing is for the good of everyone – the lender, past, present and future borrowers.
Sometimes to be kind, you have to be unkind. The borrowers should know better.
A loan is a loan and they must repay it, meaning that the loan must be paid back as per their contractual agreement which states, inter-alia, that all borrowers must begin repaying their loans six months after they have graduated.
As for recalcitrant borrowers who insist on not paying and who work in the private sector, their names will be listed in the Central Credit Reference Information System (CCRIS), a computerised database maintained at Bank Negara’s Credit Bureau under the Bank of Malaysia Act 1958.
CCRIS generates credit reports and they are normally requested by financial institutions to assess their clients’ credit ratings when the latter apply for any type of loan.
This is bad news for all PTPTN defaulters in that if their names are listed under CCRIS their applications would be rejected if they applied for personal or housing loans with banks.
It is hoped that the salary deduction method works in favour of PTPTN as it could eventually collects enough funds to continue providing study loans to future borrowers as there are still many students out there waiting to apply for one.
MOHD FAIZAL ABDULLAH
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