Sunday, April 08, 2007

Tougher Action To Ensure Students Pay Up PTPTN Loans. I Don't Believe It, Do You?

Oh come off it lah!! After the earlier threats of 'severe' action, the authorities have become a laughing stock and their words of warning scare no one, least of all the greedy buggers who took the loans. In late January the PTPTN seat-warming chairman Datuk Razali Ismail warned of dire consequences and even threatened to have the names of the shameless defaulters listed on the database of Credit Tip Off Service Sdn Bhd (CTOS)! What happened? Zilch. Now Higher Education Minister Datuk Mustapa Mohamed has taken over the role of Sheriff as you can read in this Bernama report below.

The National Higher Education Fund Corporation (PTPTN) has taken several steps to ensure students pay up their loans amounting to about RM11.1 billion.

Higher Education Minister Datuk Mustapa Mohamed said the steps included tightening loan procedures and sending summonses to those who failed to pay up.

"From this month, we require the loans to be backed by guarantors. There was no need for guarantors in the past but from now onwards, parents can be the guarantors," he said to reporters after launching the Higher Education Ministry Day with the Rakyat at Kampung Bukit Bulat, Machap here, today.

Mustapa was commenting on a newspaper report today which said student had taken loans from the PTPTN, Public Service Department and Mara amounting to RM12 billion.

He said, from January next year, those who applied for loans must have savings in the Skim Simpanan Pendidikan Nasional (SSPN). The minimum savings amount should be RM500 for those with RM2,000 income a month. "We find that parents do not prepare for their children's education. If they have some savings, they will not need to obtain full loans," he said.

He said the PTPTN had annual fund of RM2 billion a year while the number borrowers totalled about 150,000 a year.

****** What a disgrace! RM12 billion of our hard earned money taken from us as income tax has ended up funding ungrateful scum who don't even have the decency to pay up what they owe. What a large bunch of lousy bastards they must be. Add to this the lackadaisical attitude of the saya yang menurut perintah pegawai2 in-charge of the PTPTN and other loan givers. Honestly should we have expected anything better or worse than this situation? And these government servants want a pay hike!

Judging from Tok Pa's statement the authorities must have more or less given up hope of collecting the overdue loans. He speaks about 'tightening' loan procedures and insisting on guarantors. This is for future borrowers. But what about the RM 12billion already disbursed? He only says that summons will be sent! And since when have written demands and summons succeeded? If there is no political will to prosecute a large number of them without worrying about losing votes in the next elections, then we can kiss our money goodbye.

Read here what the PTPTN said in January: Study Loan Defaulters To Be Blacklisted. Oh Not That Lame Threat Again!
Image - Source
Update 4/9/07: Mixed Reactions To PTPTN's Proposal To Tighten Loan Procedures.

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Blogger kittykat46 said...

Both Australia and the US have student loan schemes, and they seem to be pretty effective in recovering mosf of the loans.

The graduate's track record on repayment simply becomes part of their commercial credit rating. So non-repayment of student loans affects their future ability to get approvals for car loans, housing loans, credit cards and business loans etc, even entry into some sensitive jobs especially in the financial sector.

This is usually pretty effective in ensuring graduates pay up, unless they genuinely have severe financial problems or are unemployed.

I can't understand why Malaysia can't implement this step.

9:03 PM GMT+8  
Anonymous Anonymous said...

Right, but this is Malaysialah. Didn't u read abt our PM urges BUMI to remember to make repayment of commercial loan? I say, id I hv the special right to ignore loan dues, why doI care to pay?

9:46 PM GMT+8  
Blogger KerinchiGuy said...

Presumably most of these loan defaulters are Malays and Muslims. Muslims on their deathbed usually ask for their debts to be 'halalkan'. Or if they are unable to do so themselves, their relatives would make an impassioned plea for his debts and other transgressions to be forgiven by those whom he owed money or have done wrong by.

I wonder if a friday khutbah ( sermon ) could tell these errant borrowers of their religious and moral duty to settle their debts or loans. Warn them hellfire and eternal damnation awaits them if they do not sincerely attempt to do so before they die. It is a promise they made when they took the loan. It would seem rather hypocritical to come to come to the mosque, friday in and friday out, every week to pray in congregation and yet not taking heed of the khutbah.

I am sure there are some sura in the Quran or some hadith that specifically refers to settlement of debts and loans. I am quite sure there is a role for the imams and muftis to play in this.

And there could be discussions on this in the several religious programs on TV and radio. A Muslim cannot just pick and choose what teachings of a religion he choose to follow. A governement loan does not make it less of a debt and a commitment to repay!

Pay up or burn in Hell !

11:10 PM GMT+8  
Blogger delphi said...

Why is it that other countries which also grant student loans e.g., Singapore and others do not have problems of the same magnitude? Is it because the loans granted by Malaysia are, mainly, to malay students and the government is reluctant to take action against the malays for fear of political repercussions? After all, it is only tax payers' money and, according to Mahathir the non malays contribute 80% of the tax revenue. So it is no skin of the UMNO government’s nose - it is not their money!

11:16 PM GMT+8  
Anonymous Anonymous said...

Politicians rattled how students will become future leaders and all that crap. So when students ran away from the responsibilities from paying back loans, it sums up how "educated" they are. What type of leaders they will become. And deeper thoughts show the quality of our education system, backrupt of values!! They are taught how to make money, careers and all material progress. Our country is not a "value-system" educated nation. Money speaks louder. So why blame them? What goes around comes around!! The government deserves this problem!

1:18 PM GMT+8  
Anonymous Anonymous said...

It's been proven that dangling carrots does not work, it's time to bring out the BIG stick, sent in the professional debt collectors with their splashing red paint & trademark pig head on the doorstep. 100% repayment rate!

9:26 PM GMT+8  
Anonymous Anonymous said...

Actually there are even more effective ways to ensure that they pay up their loans on top of those already suggested (approvals for car loans, housing loans, credit cards and business loans etc, even entry into some sensitive jobs especially in the financial sector etc)

What they should (if they ever had the balls) do is to do the following:-

1. Prevent them from leaving the country

2. Prevent them from renewing their passports, driving, business, trading licenses, permits, whatever, you name it.

3. Snowball the fine. For every additional year that they don't pay up, they will be fined until a certain limit.

4. And finally after constant reminders not to pay up, they should be declared bankrupts.

But who's got the balls to do so lah?

6:16 PM GMT+8  

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