Why Should PTPTN Loans Be Taken Seriously?
Education loans are a form of financial aid designed to help students pursue tertiary education without bearing a significant financial burden. While these loans offer many students the opportunity to pursue higher education, they remain a financial obligation that must be repaid after graduation. Therefore, borrowers should prioritize the repayment of PTPTN loans, as it is a financial responsibility that must be fulfilled.
Education loans like PTPTN not only involve personal commitment but also impact the national education financing system. If loan repayments are neglected, it can negatively affect the financial stability and future of PTPTN borrowers while also undermining the availability of human capital essential for the nation's development.
Let's explore the impact of not repaying PTPTN loans and how managing them effectively can ensure they don't burden your financial position.
Contents
The Impact of Not Repaying PTPTN Loans on Borrowers
All borrowers who are required to make repayments 12 months after the loan period ends will be listed in the Central Credit Reference Information System (CCRIS). Checks can be done as follows:
a. Portal eCCRIS by registered users
If you are a Malaysian citizen with an online banking account and have NOT registered as an eCCRIS user, please visit any AKPK office nationwide to register at a CCRIS kiosk.
b. CCRIS kiosks available at Credit Counselling and Debt Management Agency (AKPK) premises nationwide
Please visit AKPK's website and social media platforms for information on locations and operating hours.
Note:
(reference source for CCRIS checks: https://www.bnm.gov.my/ccris)
Borrowers must make payments according to the Repayment Schedule (JBB) set by PTPTN to avoid arrears and ensure their CCRIS record remains in good standing.
The JBB contains the following details:
- Principal amount;
- Ujrah service fee;
- Total PTPTN loan amount;
- Outstanding PTPTN loan balance; and
- Repayment period.
The CCRIS record displays a score based on the current status of the borrower's loan listings, including PTPTN education loans. Failure to repay PTPTN loans can negatively affect the skor kredit terjejas. This can impact the borrower’s ability to secure loans from other financial institutions, such as banks, and may significantly hinder loan approval.
Therefore, PTPTN education loans have been established as a benchmark during the initial stages before banks process other loans. In principle, prioritize repaying your PTPTN loan before applying for other financial commitments such as home purchases, vehicle financing, credit cards, or personal loans.
2. PTPTN Loan Arrears Are Increasing
If borrowers fail to repay their PTPTN loans within the stipulated period or make payments lower than the amount specified in the Repayment Schedule (JBB), PTPTN loan arrears will increase over time.
Therefore, the longer you delay repaying your loan or neglect your responsibility to repay your PTPTN loan, the higher your arrears will grow. Increasing PTPTN loan arrears can hinder your dreams of achieving financial stability.
3. Final Steps for Borrowers Who Fail to Repay PTPTN Loans
Under the National Higher Education Fund Corporation Act 1997 (Act 566), PTPTN is authorized to take action to ensure borrowers fulfill their responsibility to repay PTPTN loans on time, as stipulated in the agreement signed by the borrowers.
If borrowers still fail to repay their PTPTN loans, several measures will be implemented in stages, starting with the issuance of Reminder Letters, followed by enforcement actions such as issuing a Notice of Demand (NOD), filing civil lawsuits, and imposing travel restrictions through the Malaysian Immigration Department.
Advantages of Repaying PTPTN Loans
There are many benefits to repaying your PTPTN loan. Among them are:
1. Freedom from Debt Burden
One of the main benefits of repaying your PTPTN loan is freeing yourself from prolonged financial burdens. Once the loan is settled, you can start focusing on other financial goals, such as purchasing a house or a vehicle, as well as saving for the future by contributing to a Simpan SSPN account.
2. Improving a Good Credit Score
Repaying your loan according to the JBB can help improve your CCRIS credit score. A good CCRIS credit score not only makes it easier for you to apply for loans from other financial institutions but also allows you to be considered for certain benefits, such as lower interest rates.
3. A Clean Financial Record
When you settle your debt, your name will be removed from negative CCRIS records, meaning you will no longer be restricted from applying for other loans. This gives you greater freedom to plan your finances for the long term, ensuring a more secure and peaceful life.
4. Setting a Good Example for Future Generations
Repaying PTPTN loans is the responsibility of every borrower to ensure future generations continue to have opportunities for higher education. This action helps sustain the education financing system while indirectly setting a positive example for siblings, friends, and younger generations.
By settling your PTPTN loan, you not only demonstrate commitment to fulfilling financial responsibilities but also strengthen financial discipline, which is crucial for building a more structured and stable future.
Conclusion
PTPTN loans are not something to be taken lightly. Failure to repay these loans can negatively impact your finances, including your credit score, increasing arrears, and restricting future financial opportunities. By utilizing the various repayment channels provided by PTPTN, including the use of EPF Account II, you can start gradually reducing your loan burden.
Take action now and start by checking your loan status and planning a more stable repayment strategy.
More details
If you have any questions, please contact the PTPTN Careline at 03–21933000 or follow the official official social media @PTPTNOfficial for more information.
Hopefully, this article provides you with valuable insights.
