Don’t protect PTPTN defaulters
FocusM team | 08 Jun 2018 00:30
The government’s decision to remove National Higher Education Fund Corporation (PTPTN) defaulters from a
travel blacklist only encourages them not to pay up.
Blacklisting has proven successful in compelling defaulters to pay up. PTPTN CEO Wan Ahmad Wan Yusuf said of the one million borrowers blacklisted, 655,000 have started to pay up.
Many young Malaysians are indifferent when it comes to being financially responsible. Is it any wonder then that the bulk of credit card defaulters and bankrupts in the country are those below 30?
They spend beyond their means and have scant regard for settling their debts. If PTPTN defaulters have enough money to travel abroad for a holiday or on business, why can’t they pay their loan instalments?
If 655,000 defaulters have begun paying up, why is the government removing the remaining defaulters from the blacklist? Why not compel them to pay up, too?
Fortunately, the government has cancelled its proposal to wait until borrowers earn RM4,000 a month before starting to service their PTPTN loans. Surely if they are earning even, say RM2,000, they can start paying RM50 a month.
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