Subscribe in a reader | Subscribe by Email In July 2007, it was RM30 million. At that time, the plan was to issue legal notice to defaulters.
March last year, it was announced that only 34% of the RM86 million (about Rm23 million) has been collected back and about 2000 people were served with legal notices.
In February this year, MIEd said it will sue some 4000 borrowers to reclaim some money.
Yesterday, the default amount has ballooned to RM60 million!
Education loan defaulters owe the MIC about RM60mil and the party-owned Maju Institute of Educational Development (MIED) will come down hard on defaulters.
According to MIC president and MIED chairman Datuk Seri S. Samy Vellu, only RM34,907,357.83 has been repaid from loans amounting to around RM90mil.
“Legal action will be taken against the defaulters and the guarantors,” he said during the MIED’s second cheque presentation ceremony of the year at Dynasty Hotel yesterday.
“Their names will be blacklisted to prevent them from obtaining other loans and they will also be slapped with travel bans.”
Samy Vellu added that around 95% of students tried to avoid repayment and some even went to the extent of changing their addresses after completing their studies.
MIED, the educational arm of MIC, has disbursed around RM90mil through 12,500 study loans for around 9,500 students since its inception in 1984.
The MIED stopped approving loans of RM40,000 and above in March last year as many borrowers had difficulty repaying them.
Loans amounting to RM1,171,270 were handed out to 143 varsity students yesterday.
Medical students took the lion’s share totalling RM692,000, followed by dentistry students at RM106,500, while engineering students were given RM75,000.
This is one of those cases where MIC is let down by the community instead of the other way around. Shameful indeed that we have so many people who are evading paying back the money which can be used for other students.
