Sarawak pays RM90m to help students clear PTPTN loan

Under a MoU, the state government will pay up to 30% of the current PTPTN loan balance for borrowers who have settled at least 30% of their debt. (Bernama pic)

PETALING JAYA: The Sarawak government has to date paid the National Higher Education Fund Corporation (PTPTN) RM90.42 million to clear 30% of the debts owed by defaulters from the East Malaysian state.

The fund’s chairman, Norliza Abdul Rahim, said this sum was paid following the signing of a MoU for the Sarawak PTPTN student loan repayment incentive scheme, Bernama reported.

The MoU between PTPTN and the Sarawak Foundation was signed in March 2021.

Under the agreement, the state government will pay up to 30% of the current PTPTN loan balance for borrowers who have settled at least 30% of their debt.

“The sum will benefit more than 25,000 PTPTN borrowers from Sarawak,” Norliza was quoted as saying.

She went on to say that the repayment to the revolving loan scheme was part of an initiative that was first outlined in the state’s 2020 budget.

Last month, Sarawak premier Abang Johari Openg said RM30 million would be allocated under the 2024 state budget to help Sarawak graduates clear their debts.