As we known, those students who borrow PTPTN loan are mostly coming from low to middle class people. At the end of the day, most of them will end-up working with public and private sector, and there’s a minority of them will work as high level people. I personally do not agree PTPTN barred loan defaulters from traveling overseas. Instead of that, we should sit down and think of other alternative that can help them to pay during this current economy situation.
Besides that, barred defaulter from travelling overseas cannot really solve the problem as some of defaulter may works as travel agents, journalist and etc that require to travel overseas every month.
What Action Will Be Taken If Loan Defaulters Refuse to Payback?
Firstly, their names will be submitted to the Immigration Department after sending out numerous reminders and warnings by the PTPTN.
Based on the actual PTPTN’s loan collection system, students will receive their first notice to start their repayment 6 months after graduation. Then, second and third reminder will be sent out after 30 and 60 days, respectively, if the first notice was ignored.
The lawyers will then send a Letter of Demand 30 days after the final notice. If there is still no acknowledgement, the defaulters’ names will be published in newspapers.
30 days after that, debt collectors will be appointed by the Special PTPTN Loans Recovery Team to take action against them. But sadly, the only thing that they’re doing now is just barred the defaulters from leaving the country only.
Hence, I feel that the authorities should do something and it’s time to enforce strict rules and take a legal action on those who never payback the loan in order to help thousands of other Malaysians who still pursue their higher education.
Firstly, the authorities can collaborate with EPF and immigration to trace the loan defaulter whether they still alive, currently employ or overseas PR. If found that they have healthy financial management but still refuse to payback the PTPTN loan, then they can:
i. Blacklist them from applying credit card, car loan, housing loan or any loans from banks.
ii. Collaborate with company to cut monthly salary of the employee who is PTPTN defaulter.
iii. Charge them in court