Budget 2015: Matching grant initiative can help increase funds - PTPTN

The Government’s initiative to allow those earning RM4,000 per month to take part in the National Education Savings Scheme (SSPN-i) savings scheme and enjoy matching grants can help increase funds available under the National Higher Education Fund Corporation (PTPTN), said its chairman Datuk Shamsul Anuar Nasarah.

He said, the increase in funds can help PTPTN finance students in higher institutions of education.

“Previously only those who participated in the savings scheme with an income of not more than RM2,000 per month could only enjoy the matching grant, but now the Government was to encourage more people to contribute to the PTPTN fund.

“We (PTPTN) hope that this new initiative can help increase the fund which will give an opportunity to provide loans for students studying in institutions of higher learning,” he told Astro AWANI.

He said PTPTN is finding to difficult to finance new students due to the high number of defaulters.

To date, more than 170,000 defaulters from 1998 to 2010, have yet to repay their PTPTN loans amounting to RM1.2 billion.

Shamsul hoped apart from this matching grant initiative, a 20 percent discount given to borrowers if they repay their loans in full before March 31 next year, will also hope increase PTPTN’s funds.

“PTPTN is targeting to collect RM200 million in the next three months under this initiative, as borrowers will be given a 20 percent discount.

“If borrowers can understand the predicament faced by PTPTN, they will understand the importance of repaying their loans, because the money paid back to PTPTN can help finance other students to further their studies in universities,” he said.

Yesterday, Prime Minister Datuk Seri Najib Tun Razak had proposed the monthly household income limit for contributors of SSPN-i be increased to RM4,000 per month.

This is to to encourage more parents to become depositors and enjoy matching grants which had been introduced since 2005.

Apart from that, the Prime Minister announced an additional 20 percent discount for PTPTN borrowers who made lump sum repayments from now until March 31, 2015.

A 10 percent rebate meanwhile will be given to borrowers who continuously make repayments for 12 months until December 31, 2015.

The Prime Minister said, this is to encourage repayments from some 174,000 borrowers who have not made a single payment since 2010.

“Since the establishment of PTPTN in 1997 until now, loans have been given out to 2.1 million borrowers amounting to RM47.8 billion.

“However, as of August 31 this year, only RM5.36 billion or 46 percent from the RM11.76 billion had been collected,” he said when tabling Budget 2015 in Parliament yesterday.