Putrajaya Considers Reinstating Travel Ban For Ptptn Loan Defaulters

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KUALA LUMPUR: Putrajaya is considering whether to reinstate the overseas travel ban against blacklisted National Higher Education Fund Corporation (PTPTN) loan defaulters, says Datuk Mustapha Sakmud (pic).
“When the travel ban was previously in place, it had a positive impact on repayment. However, the ban was scrapped,” the deputy higher education minister said during Question Time in the Dewan Negara on Monday (March 10).
“At this juncture, we are looking into this matter to determine whether this is the best method,” he said, adding that there are other methods that are being considered as well.
“This is still under consideration. We have not made a decision on whether to re-implement a travel ban against defaulters,” he added.
He was responding to a supplementary question by Senator Datuk Rosni Sohar on whether the government has plans to bring back the travel ban which was scrapped in 2018.
She added that PTPTN was able to collect RM4bil in loan repayments when the ban was in place. However, there had been a decrease in repayments after it was scrapped.
Mustapha said a total of 2.44 million borrowers, or 86.45% of PTPTN loan recipients, have begun repaying their loans.
Of the 2.44 million, about 1.044 million borrowers have fully paid their loans.
"This includes 585,638 borrowers who are making regular repayments with no outstanding arrears, while 817,872 borrowers are making irregular payments and have arrears," Bernama quoted him as saying.
Mustapha added that 383,637 borrowers – or 13.55% of the 4.10 million borrowers whose loans have been approved – have never made any repayments as of December last year.
He also advised those who are unable to service their loans to go to the nearest PTPTN office for discussion.
"For those who have graduated and are unemployed or housewives, PTPTN is practical and considerate.
“We encourage borrowers who are unable to repay (their loans) to go to the nearest PTPTN office and have a heart-to-heart talk,” he said.
"We can restructure the payment. We will not be punitive. We are open and will discuss the best repayment solution that works for all parties," he added.
He was responding to a question from Senator Roderick Wong Siew Lead on the number of PTPTN borrowers with no arrears and those who still have outstanding repayment. - Star

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