PETALING JAYA: Their low income and the lack of a backlash for defaulting are among the reasons why some borrowers have stopped repaying their National Higher Education Fund Corporation (PTPTN) loans.
However, many others are diligently settling their debt despite their low pay – compromising their other needs.
A graduate, who wanted to be known only as Han, said she has successfully paid off her PTPTN loan, even with only a RM3,000 salary.
“I needed to pay RM127 monthly, but I always paid extra. When the government came up with any discount offers, I would take the opportunity to pay more.
“Now I am free of my student debt and can start saving,” she said.
Former market development executive Syaidah Che Danial said she had been diligently making her PTPTN loan instalments after graduating with a degree in Business Computing in 2015.
“I made the monthly payments after graduating and I worked for five years before continuing to do my PhD. I’ve requested to postpone my PTPTN payments as I’m currently studying.
“I have no issues in repaying my loan because I know my responsibility and I do not want anyone to be deprived of opportunities to further their studies due to a lack of funds,” she said.
Others said they had not been consistent with repaying their loan and had restructured for a lower repayment amount.
“I had a RM32,000 loan and I paid only when I had money after graduating,” said 37-year-old Nur Nabila.
“In 2018, I opted for a loan restructuring and paid the arrears using my EPF Account 2. I paid RM200 monthly, but I felt like the loan was not moving.
“I finally withdrew from my EPF Account 2 three times to repay the loan in full and I got a discount of RM700 for my last payment. Now I’m free from my PTPTN loan,” she added.
On Sept 21, Higher Education Minister Datuk Seri Dr Zambry Abd Kadir said 430,000 borrowers have failed to repay their PTPTN loans, amounting to an estimated RM6bil.
He said these borrowers have never made any repayments to PTPTN despite many having established careers.
He added that PTPTN was planning to take legal action against these defaulters.
A 40-year-old barista, who wanted to be known only as Afiq, said he had made repayments to PTPTN for two years after graduating before stopping due to his low income.
“I graduated with a diploma in hotel and catering in 2000 and made payments for about two years. The last time I made my payment for the loan was in 2012.
“I stopped paying after I got married and I wasn’t earning enough to support my family.
“I also do not have plans to repay the loan as my salary is still low and any action against defaulters does not affect me. I don’t travel overseas nor do I have any bank loans,” he said.
A 29-year-old who wanted to remain anonymous said he was not aware how his life would be affected if he continues to default on his PTPTN loan.
“I will be getting married soon and although my future wife has raised concerns about my PTPTN arrears, I’ve by far had no problem applying for bank loans.
“I also successfully secured a car loan,” he said, adding that he did not repay his loan as he did not complete his studies.
Other borrowers said they are struggling to fully repay their loans as they can only pay back a minimal amount.
A 33-year-old graphic designer, who wanted to be known only as Fad, said he could only pay a small amount every month because he works as a freelancer.
“I have about RM4,000 in PTPTN loans. If I worked in the corporate sector, I would have been able to settle my loans, but because I am self-employed, I am only able to pay RM115 per month,” he said.
Malaysians online suggested that travel restrictions should be reimposed for defaulters and that they should be blacklisted by banks.
Others warned that loan defaulters will face the consequences when wanting to apply for a housing loan.
“Their CCRIS will be blacklisted. Defaulters cannot have access to financial loans. If you want to buy a motorcycle, car or house, pay everything from your own pocket,” said wfr3104.
(Bank Negara’s Central Credit Reference Information System or CCRIS Report lists the financing and repayment history of a borrower over the past 12 months, as reported by participating financial institutions.)
X users reminded those with PTPTN loans that they can settle their loans using money from their EPF Account 2.
“This is what I did before, and I got a 20% discount,” said @fikryfikir.
