PTPTN Borrowers With Overlapping Loans Found A Way Out

Students with two separate National Higher Education Fund Corporation (PTPTN) loans can now solve their problem of overlapping loans to clear any bad credit record.

It was reported that as many as 284,210 blacklisted borrowers are benefiting from PTPTN’s new improved system.

Higher Education Minister Datuk Seri Idris Jusoh said that students who have taken two loans for diploma and degree studies would now have both outstanding amounts combined into one lump sum.

“Students only need [to] make payment six months after completion of their studies. Therefore, they will not face any problems with financial institutions, the Immigration Department, or action based on any laws,” he said in response to a question by Datuk Dr Noor Azmi Ghazali (BN-Bagan Serai) on the measures taken to deal with the issue of overlapping loans for diploma and degree studies.

“It is carried out in two phases, beginning April 6 last year, where new loans will be approved for those with current loans by merging them (the two loans),” added Idris.

“In the second phase beginning early this month, the merging facility will be carried out automatically,” he said.

Over 2.71 million students nationwide have been granted loans from PTPTN, and repayments worth RM3.4 billion were collected last year.

“We are confident with the new facility and positive changes in our approach, we will be able to collect repayment worth up to RM4 billion this year,” he said.

The National Education Scheme (SSPN) under PTPTN had received overwhelming response with more than three million account holders and total deposits worth RM2.846 million, said Idris.

“This is because it gives a special dividend of between 3% [and] 4.25%, compared to normal banks that only give (interest of) about 1.5%.

“We hope more will come forward to join the scheme,” he said.

[Source]