Easing the burden: A filepic of a member of the public walking pass a PTPTN branch office. The initiative by the government will benefit students from low-income families.
KUALA LUMPUR: National Higher Education Fund Corporation (PTPTN) loans for students from poor and hardcore poor families, identified through e-Kasih data, who are pursuing studies at public higher education institutions (IPTA), will be converted into scholarships beginning next year, says PTPTN chairman Datuk Seri Norliza Rahim.
She said the initiative, announced under Budget 2026, demonstrates the government’s concern for the welfare of students from low-income families and its commitment to providing 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 yesterday.
When tabling Budget 2026 last Friday, Prime Minister Datuk Seri Anwar Ibrahim announced free PTPTN education for 5,800 students from poor families pursuing studies at IPTA, with an annual allocation of RM120mil.
In addition, the government has also agreed to exempt PTPTN loan repayments for students from low and middle-income families who graduate with first-class honours degrees, involving an allocation of RM90mil annually, benefiting around 6,000 borrowers.
Norliza said the exemption of PTPTN loan repayments serves as a form of appreciation for 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, Bernama reported.
On the restrictions on overseas travel for borrowers who are able to repay their loans but have defaulted while working abroad, Norliza said the government places strong emphasis on ensuring the sustainability of PTPTN funds so that future generations will continue to have access to higher education financing.
“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 said.
She said further details on the implementation of initiatives announced under Budget 2026 will be announced by PTPTN in the near future.
Universiti Sains Malaysia Education Management, Planning and Policy expert Assoc Prof Dr Aziah Ismail said for many B40 households, the biggest barrier to higher education is not a lack of talent or motivation, but the affordability of university education.
This initiative gives deserving students a real opportunity to pursue their ambitions without being hindered by family income.
“However, it is important to highlight that a total of 5,800 students is still a relatively small number compared to the overall university population. We must ensure that support extends beyond just tuition fees to cover living expenses and learning materials,” she said.
