Debtors lament over bureaucracy in PTPTN loan repayment system

Attracted to the offer of 20 percent discount for debtors who makes full settlement of their National Higher Education Fund Corporation (PTPTN) loan, Safura Foo decided to pay all her outstanding balance of RM18,449.35 in March, 2015.

However, her joy and relief of being a debt-free person lasted only until May this year when she was stopped at the KL International Airport (KLIA) and was told by the Immigration officer that she was barred from travelling overseas as her name had been blacklisted.

"I was at the airport, ready for my trip to Melbourne, Australia. Imagine my shock when I was told that I cannot travel overseas and that my name has been blacklisted because I still have PTPTN loan arrears of over RM3,000.

"To unblacklist my name, I was asked to pay RM1,000 and due to the urgent situation, I made the payment online," she told Bernama.

However, the former photography student from Segi College still harbored anger and disappointment toward PTPTN and wondered why she was still in PTPTN debtor's category even after she had made full settlement of the loan more than a year ago.

Upon her return from Melbourne, Safura went to PTPTN office in Kuala Lumpur to seek clarification and was told that she allegedly had arrears of over RM3,000 because 'the cheque was not cleared' – an answer she found very disappointing.

"I'm very disappointed. Why is it that, after settling all the payments, the records were not updated and for over a year, I have not received any notification letter or notice?

"I have lodged a complaint about this almost a month ago, but the PTPTN has yet to give any feedback," she said.

Safura said she was also informed by the Immigration officer at the KLIA that hers was not the first case and that many had been 'forced' to make the immediate payment of RM1,000 at the airport to unblacklist their names so that they could travel overseas.

A debtor, who only wanted to be known as Kho, 33, also expressed his disappointment when his application to repay the loan through salary deduction had been kept in limbo since August last year.

He said he had repeatedly went to the PTPTN counter to ask about the status of his application, but nothing had been forthcoming.

"The problem is not that debtors wouldn't pay, it's the process and bureaucracy that make it difficult.

I really hope that the government and the PTPTN could do something about this so that all the PTPTN loan arrears, which were said to have reach billions of ringgit, could be reduced," he added.