The National Higher Education Fund Corporation's (PTPTN) proposal to list the names of loan defaulters in the Central Credit Reference Information System (CCRIS) is to educate rather than punish.

Its senior general manager, Tuan Din Tuan Mat said that the move could prompt the borrowers to better manage their finance.

"We hope that the borrowers who have problem with repayment to negotiate the payment mechanism," he said when contacted here, today.

Second Education Minister Datuk Seri Idris Jusoh said 170,000 PTPTN borrowers are given the opportunity to negotiate their method of repayment before their names are listed in CCRIS.

When implemented, the borrowers are given three months to negotiate and make payment before their names are listed in CCRIS, he said in Putrajaya today.