KUALA LUMPUR: The reduced financing for students in both public and private universities may be lifted once the National Higher Education Fund Corporation (PTPTN) recovers unpaid loans, says chairman Datuk Shamsul Anuar Nasarah.
He said in its efforts to recover the unpaid loans, PTPTN would be listing defaulters in the Central Credit Reference Information System (CCRIS).
“Effective Jan 1, next year, those who have never paid their loans three years after graduating will have their names and details listed in CCRIS.
“We are not blacklisting them. However, it will affect them when they apply for loans from financing institutions in the future,” Shamsul said at the PTPTN headquarters here yesterday.
He said there were 173,985 defaulters who had yet to start paying.
“We urge defaulters to come and consult our officers to make their payments. They have roughly two more months to do so before being listed in CCRIS.”
Shamsul said as of Sept 30, only RM5.41 billion or 45.18 per cent had been recovered from RM12 billion.
“We need to recover the funds to ensure the sustainability of loans for future borrowers. PTPTN may revert to the original financing once the funds are recovered.”
PTPTN had on Monday announced it would reduce financing for students. The new financing plan, which took effect on Nov 1, saw a five per cent reduction for students in public institutions and a 15 per cent reduction for students in private institutions.
Shamsul said despite the appeals from certain quarters that the reduction may burden the students, PTPTN had no choice but to reduce (the size of) the loans as many borrowers had failed to repay the them.
“I recognise that it will be a burden for some, especially those who depend on loans to pursue their studies, but that is the repercussion we have to face when people fail to pay back what they owe.
“It was not an easy decision to make on our part, but we trust it is the best step we can take at the moment.he said.
“So far, only 996,610 borrowers had repaid their loans. However, it is still insufficient for PTPTN to sustain in providing loans to future borrowers.”
“When people do not pay, future students will feel the brunt.” he said.