How the Sarawak state govt got 22,000 people to pay their PTPTN loans

As of November 2021, about 22% of graduates who took the National Higher Education Fund (PTPTN) loan have not started repaying it yet. That amounts to more than 500,000 people, in case you’re wondering.

That’s a LOT of defaulters, to be sure, but what if we told you the number probably would’ve been even higher if not for Sarawak’s state government’s efforts? That’s right…

 

Sarawak’s state govt spent RM77.99 million to help people repay their PTPTN loans

Beginning in 2020, the Sarawakian state government – through Yayasan Sarawak – teamed up with PTPTN, and extended a deal to Sarawakians who took out PTPTN loans: if they pay at least 30% of what they owe, the state government will help them pay another 30% of the leftover amount. Kinda confusing, so here’s an example:

You owe RM40,000 in PTPTN loans. If you repay at least RM12,000, the Sarawakian state government will help you repay 30% of whatever’s left.

The initiative proved to be successful; over 22,000 Sarawakians have taken the deal so far. And even though the initiative has cost the Sarawakian state government a hefty RM77.99 million, they’re gonna keep doing it:

“This year, the Sarawak government remains committed to continuing this incentive, with an additional allocation of RM41.84 million. This should benefit nearly 10,000 (PTPTN) borrowers.” – PTPTN CEO Ahmad Dasuki Abdul Majid in a mock cheque handing-over ceremony

On top of that, the Premier of Sarawak, Datuk Patinggi Tan Sri Abang Johari Tun Openg, has been ‘giving serious attention’ to various aspects of education within the state, including an RM1 billion for repair works on dilapidated schools, RM50 million to connect electricity grids to schools, the Graduan Pulang Sarawak (i-GPS) incentive of RM600 per person, and more.