KUALA LUMPUR – Under Budget 2026, the National Higher Education Fund Corporation (PTPTN) will convert loans for students from poor and hardcore poor families, as identified through e-Kasih data, into scholarships.
This initiative, which will apply to students pursuing studies at public higher education institutions (IPTAs), will take effect next year.
PTPTN chairman Datuk Seri Norliza Rahim said the move reflects the government’s commitment to supporting students from low-income backgrounds and ensuring inclusive access to higher education.
“This measure is expected to ease the financial burden of students and allow them to fully focus on their studies,” she said in a statement today.
During the tabling of Budget 2026 on Friday, Prime Minister Datuk Seri Anwar Ibrahim also announced that 5,800 students from disadvantaged families would benefit from free PTPTN education, with an annual allocation of RM120 million.
Additionally, the government will exempt loan repayments for students from low- and middle-income families who graduate with first-class honours degrees from IPTAs. This exemption, which involves an annual allocation of RM90 million, will benefit approximately 6,000 borrowers.
Government Recognises Excellence with Loan Repayment Exemptions
Norliza highlighted that the exemption of PTPTN loan repayments is intended to reward outstanding students.
“The government continues to prioritise efforts to produce high-quality graduates in Malaysia. In this regard, students are encouraged to remain focused on their studies and strive for academic excellence,” she said.
On the topic of restrictions on overseas travel for borrowers with outstanding loans who are able to repay but have defaulted while working abroad, Norliza emphasised the importance of PTPTN’s sustainability.
“PTPTN is a loan facility that must be repaid to ensure the continuity of funds for new borrowers. Therefore, targeted overseas travel restrictions will be imposed on PTPTN borrowers with outstanding arrears,” she explained.
Further details on the implementation of these initiatives will be released by PTPTN in the near future. – October 12, 2025