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Consequences of Not Paying Back Your PTPTN Loan

BY Team Loanstreet

Updated 29 Apr 2022

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We all can agree that Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) is one of the most generous government education loan schemes available in Malaysia today. Since 1997, it has provided loans to more than 3.51 million students. With the current flat interest rate of 1% p.a. of the original loan amount, students with limited financial resources now have an affordable way to fund their tertiary education dreams.  

However, not everyone has the responsibility to pay back. According to the News Straits Times in 2019, a total of 375,925 borrowers have yet to start repaying loans to PTPTN. The staggeringly huge number of defaulters have left PTPTN with no choice but to introduce strict measures against these defaulters.

If you’re one of those PTPTN defaulters who are currently struggling to make repayments, never bothered about paying or constantly using “Later lah” as an excuse, read on. In this article, we will share the measures taken by the authorities to penalise you when you fail to make repayments. 


What's covered in this article?

1. Barred from leaving the country


This is everyone’s nightmare, TRAVEL BANS! Well, if you (the defaulter) missed payment schedules regularly. You are not allowed to pass through the immigration checkpoint and not allowed to renew your passports. Meaning you’ll be stuck in Malaysia until the bans are lifted.

So, if you’re someone who has a PTPTN loan but does not pay regularly, do check your status before traveling. Proceed to the Sistem Aplikasi Elektronik Jabatan Imigresen Malaysia (SSPI2) to check whether your name is on the blacklist.

2. Blacklisted on CCRIS database


A Central Credit Reference Information System (CCRIS) report reflects your credit score and the database is being shared among ALL financial institutions. So keep in mind to always maintain a good credit score, as it has the ability to affect your assets in Malaysia. Your credit history will be reviewed by the bank whenever an application is made to borrow to identify whether you’re a good or a bad borrower. So, if you’re not a good pay master or blacklisted, it will be shown in the report. 

When that happens, you can say goodbye to personal loans, car loans, home loans, business loans and even credit cards. You have a higher chance of being rejected by the bank. But what you can do to improve your CCRIS is by consistently repaying PTPTN loans for 12 months, as the CCRIS report only shows 12 months of credit history. So any negative credits that are over 12 months will not be shown. 


3. Legal Action will be taken 

Image source: memegenerator

With the generosity of PTPTN lending students the loan, many have failed to make repayments. So, PTPTN will take stern action against those who refused to pay up despite many reminders and requests to court. Most likely after this, you (the defaulters) will be forced by the court to repay the loans with additional legal fees every year in a consistent manner. 

To make things worse, if you still refuse to pay the loan after the court order is made, the authorities will be obligated to take your assets away, subject to certain limitations. We smell bankruptcy on the way. 

But what if you’re unable to pay your PTPTN loan?

Image source: spBlogger

Here’s what you can do: 

1. If you are unable to find work during your 12-month grace period, request for deferment payment. Contact the corporation’s careline at 03-2193 3000 or visit the official portal at for more information. 

2. You can pay as little as RM40 a month as long as you finish paying your loan within the time frame PTPTN gave.

Also, Did you know that after graduating, PTPTN won’t charge you interest for 12 months? YES WE MEAN A WHOLE YEAR. That’s why it is beneficial for you to pay back the PTPTN loan within the first year with no interest rates.

On top of that, our Finance Minister has also made an announcement during the 2022 Budget Tabling that from 1 November 2021 to 30 April 2022, a discount will be given to those who make PTPTN loan payment. Specifically:

  • 15% to those who wish to make full settlement on the loan.
  • 12% to those who settle at least half of their loan balance in one payment.
  • 10% to those that repay their PTPTN loan by scheduled salary or debit deduction.  

So, don’t forget to take this opportunity to pay off your student loan debt, friends! Good luck and may the force be with you.

*The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the articles.


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About the Author

Team Loanstreet

Run by a professional human-sized team, get resourceful tips & guides from our very own library of financial articles that can help improve your financial lifestyle & make a well-informed money decision. We strive to provide you with the best service in helping you to get the most out of that DUIT!


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