The Government is considering handing the negative credit data of serious student loan defaulters to credit agencies to deter defaults.
Secretary for Education Eddie Ng told legislators today the Government will work with the Office of the Privacy Commissioner for Personal Data to ensure the practice complies with the Code of Practice on Consumer Credit Data.
He said the practice can discourage borrowers from defaulting on loan repayments, and convey the positive message of responsible financial management to students.
The Government reviewed the loan scheme in 2012 to ensure eligible courses have a reasonable degree of quality to prevent unscrupulous course providers from abusing the loan scheme.
In the past five years the number of defaulters dropped from 9,440 in 2010-11 to 6,371 in 2014-15.
