PTPTN Loan Defaulters Tell Why They Aren’t Paying Up
Getting study loan defaulters to pay up seems to be a perpetual problem for the National Higher Education Fund Corporation (PTPTN).
Last year, PTPTN announced there will be a 5% reduction in loans for students in public institutions of higher learning and a 15% loan reduction for students in private institutions.
In November, as part of its efforts to recover unpaid loan, PTPTN said it will be listing defaulters, amounting to some 500,000 individuals, in the Central Credit Reference Information System (CCRIS).
PTPTN loan defaulters, on the other hand, have a myriad of reasons as to why they can’t or should not have to repay the loan.
A civil servant, who wanted to be identified as Ridza, said he assumed that he would be automatically exempted from repaying his study loan after obtaining excellent results in university that earned him the Vice-Chancellor’s Award.
“I realised later that I still had to pay the money back and this involved a lot of letters and tedious procedures,’ he told The Star.
He shared that he was further distressed by its “inefficient and uncaring” staff, and his frustration with their services has led to his refusal to pay up.
Software engineer Nur Atikah Rahman also complained about PTPTN’s inefficiency. She said she applied for an interest transition, or ujrah, on her loan in 2013, but has still not received a response from PTPTN officers.
She said she has called a few times to follow up after a visit to the PTPTN office, but was told she had to go back again.
“My work hours are hectic. I cannot afford this running around,” she said, adding that the rising cost of living also contributed to why she has not been repaying her loan.
Meanwhile, administrative executive Nurul Nadira Ahmad said she was not earning enough to pay off her loan. “I earn so little and my duty is to my daughter and parents first,” said Nurul.
PTPTN loan takers are currently required to start repaying their loan six months after graduation. Effective January 2015, those who have not started to pay their loans three years after graduating will have their names and details listed in CCRIS.
Loan defaulters will not be blacklisted under CCRIS. However, being listed on the system will affect their ability to apply for loans from financing institutions in the future.
Not paying your loans on time can earn you a bad credit score. Learn how you can manage your debt with the right balance transfer credit card.
[Source]
