Umno Youth has hit out at the government’s move to blacklist National
Higher Education Fund Corporation (PTPTN) loan defaulters by listing
them in the Bank Negara’s credit bureau database.
Its chief Khairy Jamaluddinn said this was because PTPTN loans were
different from other loans such as credit card or higher purchase loans.
“PTPTN loan is a personal choice which is necessary because the
government does not provide free education at higher learning
institutions and the need to obtain a diploma or a degree is important
for the youths’ career and intellectual development,” said Khairy in a
statement today.
“The government should use the available mechanism to collect payments
from defaulters who refuse to repay their loans. They should instead
focus on repayment incentives and impose interests on the loan holders
based on their current situation.”
At the same time, he said these loan defaulters consists of a small
group and such act to blacklist them would give a negative impression to
PTPTN’s policy to ensure the younger generations receive the education
they deserve.
Khairy said this in response to Education Minister II Datuk Seri Idris
Jusoh’s announcement on PTPTN’s move to list loan defaulters in the
Central Credit Reference Information System (CCRIS), a computerised
database system used by banks to access prospective borrower’s financial
profile.
The move has also received a backlash from opposition lawmakers and non-governmental organisations.
PKR said such a move was a form of threat and punishment to the
students as they would have problems getting hire purchase, while
Perkasa’s secretary-general Syed Hassan Syed Ali said it was a
persecution of Bumiputera youths as most of these loan holders are
Bumiputeras.
Following the criticism, Idris told The Malaysian Insider that the
ministry would still need to work out the implementation and would heed
views from all parties to ensure no students would be “victimised” or
let down by the programme.
PTPTN has approved loan education to 2.2 million students since July
1, 1997 until June 30 this year, which amounted to a total of RM49.9
billion. – August 20, 2013.