Take tougher measures to make defaulters pay off loans

IT is astounding that only RM8bil out of the RM56bil loans released by PTPTN have been recovered since 1997 when this education financing scheme started, “PTPTN borrowers now blacklisted” (The Star, Sept 24).

As a result, PTPTN decided not to give out full loans to new borrowers effective from last month and this has adversely affected needy students from poor families who badly need this facility to pursue their tertiary education.

PTPTN borrowers who have defaulted on their loan payments have unfairly denied these students the opportunity to have a bright future.

The new move to put the names of all the borrowers in the Central Credit Reference Information System (CCRIS) to ensure they start to repay their loans once it was due and blacklisting those who default is a good measure but I think more has to be done.

PTPTN must set a time limit for the defaulters and should not hesitate to take legal action to seize the assets of those whose loans have been outstanding for five years or more from the date they were supposed to start paying.

Furthermore, PTPTN should not hesitate to send the details of the hardcore defaulters to CTOS.

We hope these tougher measures will vastly improve the recovery of the huge amounts owed by defaulters to the PTPTN so that they can continue to help other students. THOMAS FOO Subang Jaya