PETALING JAYA: The Public Services Department (JPA) will introduce a new academic merit-based sponsorship model for the pre-service training (LSP) programme.
In a statement issued on Monday (April 28), JPA said the new sponsorship model, called PBU Akademik, will take effect on June 1, 2025, for JPA-sponsored students excluding those in medicine, dentistry, and pharmacy.
The new model replaces the 2016 service placement merit-based convertible loan or PBU 2016.
Students will benefit from reduced loan repayment rates based on their final cumulative grade point average (CGPA) scores.
"For students obtaining a CGPA of 3.75 to 4.00, they will repay only 5% of their loans, while those with a CGPA between 3.50 and 3.74 will pay 10%.
"Repayment rates are set at 15% for a CGPA between 3.00 and 3.49, and 20% for those with a CGPA below 3.00 or who take longer to complete their studies.
"Students who score below a 3.00 CGPA or fail will be required to repay the full loan amount," the statement read.
JPA added that students who secure employment in the public sector aligned with their qualifications will be fully exempt from repaying the remaining loan balance.
Meanwhile, students pursuing medicine, dentistry, and pharmacy will receive full loan exemption if they successfully complete their studies and fulfil their government service contract.
"If the students fail to complete their studies or fulfil the terms and conditions of the contract, it will result in full loan repayment," it said.
The new model applies to all new JPA-sponsored students starting June 1, 2025, except for scholarship recipients.
JPA said current students under the existing scheme (PBU 2016) will have the option to switch to the new model in stages, beginning January 1, 2026.
"For students who completed their studies and are currently repaying loans under the old scheme, they are instructed to pause payments starting June 1, 2025, until the option to switch is available," it said.
