Umno Youth reached across the political aisle today to back Pakatan Rakyat’s (PR) call to stop Putrajaya’s move to list National Higher Education Fund Corporation (PTPTN) defaulters on Bank Negara’s Credit Bureau database.
Umno Youth chief Khairy Jamaluddin said the wing disagreed with the public-shaming exercise, and urged the federal government to try other credit collection mechanisms to collect from the defaulters.
“The government could use other existing measures to take action against defaulters who had stubbornly refused to pay up despite notices being issued to them,” he said in a statement.
He added that priority should be given to an integrated approach that includes introducing incentives for those who pay up and a flexible payment system that takes into consideration the borrowers’ financial situation.
“This is because PTPTN loan is different from other credit facilities such as credit card or hire purchase which are loans taken out of personal choice while PTPTN is a necessity for students,” he said.
The youth and sports minister said the National Higher Education Fund Corporation (PTPTN) loan has become a necessity for students because the government does not provide free education at institutes of higher learning.
A diploma or a degree has become a must for the intellectual development of the youths of today, he said.
“Meanwhile, the group of borrowers who had refused to pay up their loans is small and this action to blacklist all defaulters will create a negative impression of PTPTN,” he said.
Khairy was responding to a recent statement by Education Minister II Datuk Seri Idris Jusoh that beginning this month; PTPTN has started collaborating with Bank Negara to list defaulters on the CCRIS.
Idris was reported as saying yesterday that beginning this month, the National Higher Education Fund Corporation (PTPTN) has been collaborating with Bank Negara to list defaulters on the CCRIS.
PR leaders have cried foul over this announcement and demanded that the government stop this plan and threatened a nationwide campaign to protest the move it is not shelved.
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