Good move that should be implemented years ago. Debt issuer (borrower) shall redempt themselves to the holder (PSD). Only by then, more people can be benefited by the study loan fund. Some debtors earn like 10 grants in a month yet don't have the initiative to make the repayment, yuks.
PSD gets nod to put defaulters on credit-rating blacklist
AFTER trying just about everything to recover payments for study loans and still not making any headway, the Public Service Department has come up with a last-gasp measure – to put defaulters on the credit-rating blacklist to bar them from getting any more loans.
The PSD has consulted legal experts and has been given the go-ahead to implement the plan.
In the past, the department and other agencies had embarked on measures which included:
> Deducting the salaries of its own employees who had defaulted in repaying the loans.
> The Higher Education Ministry tabled a Bill in Parliament last year to allow it to seize passports of loan defaulters who tried to escape overseas.
> It was also announced last year that hardcore study loan defaulters serving in the civil service would not be considered for promotions. This meant that those blacklisted by the PSD, National Higher Education Fund Corp (PTPTN), Mara and other government-linked corporations would not be promoted until they settled their loans.
> The names of study loan defaulters to be forwarded to the Attorney-General’s Chambers so that legal action can be taken against them.
> PSD decided to revoke the 75% discount given to 1,200 hardcore defaulters and blacklist them as well as their spouses and children (if any) so that they would not enjoy a similar loan facility in future.
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