Travel ban decision on PTPTN loan defaulters by July

KLUANG, 19 May 2019: 

The idea to reintroduce travel bans on National Higher Education Fund Corporation (PTPTN) loan defaulters, and other repayment methods, will have to consider public and impact, said Education Minister Dr Maszlee Malik.

He said the idea was just at the proposal level after engagements with various stakeholders.

“Now, PTPTN is doing public consultation to get society’s feedback but the majority of Malaysians do not agree with the suggestion (impose a travel ban on defaulters).

“However, I have asked PTPTN to engage the media in order to provide the real picture so that people can get the right information.

“For the young people out there (the borrowers), Insya Allah (God willing) , we will try to help as best as we can in giving our best to this group, and this is my commitment as a responsible minister.”

The outcome of PTPTN’s move will be announced in July after the ongoing public consultation – which includes the decision on blacklisting defaulters and discounts for PTPTN borrowers.

The fund’s deputy chief executive Mastura Mohd Khalid on Thursday said stricter enforcement would be imposed on loan defaulters who had not serviced their loans for a long period of time was one of the 10 ideas obtained from the consultation on the mechanism for repayment of PTPTN loans.

Mastura said the idea came from round-table discussions with stakeholders including financial experts, MPs and students from January until March, leading to a six-step enforcement mechanism  – which included a proposal to bar defaulters from renewing their passports, driving licences and road tax.

– Bernama