KUALA LUMPUR: The National Higher Education Fund Corporation (PTPTN) is providing an overlapping facility to assist 45,866 students in clearing their bad credit record.
PTPTN chairman Datuk Dr Shamsul Anuar Nasarah said this would help students, who had two separate PTPTN loans for their diploma and degree studies, prior to Apr 6, 2016.
He said that 32,213 students who applied for their second loan after Apr 6, 2016, are already enjoying this new arrangement.
These students had received a bad credit record when they did not repay their diploma loans as they had furthered their studies and were currently undergoing their Bachelor’s degree, with the assistance of a PTPTN loan.
This latest move will allow students to combine or overlap the outstanding balance from their previous education loan (diploma) with the current loan (degree).
“This will help the students who currently have two separate loans with PTPTN. By doing so, they will have their credit records at the Central Credit Reference Information System (CCRIS) cleared, effective Aug 15,” he said at a press conference at Menara PTPTN here yesterday.
Shamsul said this group of students will also not be blacklisted by the Immigration Department or have any legal action taken against them, as their records will be cleared.
“For example, if a degree student with RM15,000 outstanding loan from diploma studies applies for RM21,000 to fund their degree, he will be given a total loan amount of RM36,000,” he said.
He said therefore, the degree student will only start paying for his combined diploma and degree loans, six months after completion of his degree.
Shamsul said this would also apply for Master’s students with prior education loans. They can then combine their previous loans with their existing loan.
He said those who have a gap period between continuing their studies after completing their diploma or degree will also have the remaining outstanding balance included in their current loan application.
“We hope with this, students will be able to focus on their studies and not to be burdened with issues regarding education loans,” he said.
Shamsul pointed out that for students to combine their loans, all conventional loans need to be converted to the ujrah system. Students can call PTPTN Careline at 03-21933000 to convert their loans.
Under the ujrah system, the administration fee will only be one per cent.
“At present only 545 students are affected by this have yet to convert their loan to ujrah system,” he said.
He added that he was confident that PTPTN would achieve its target of RM4 billion collections this year.
Until June this year, about RM2 billion in outstanding loan payments have been collected.
Also present during the event were PTPTN chief executive Wan Ahmad Wan Yusoff and Umno Youth Higher Education bureau chairman Datuk Dr Fathul Bari Mat Jahya.