PUTRAJAYA: The government is reviewing the loan repayment exemption criteria for National Higher Education Fund Corporation (PTPTN) borrowers who achieved first-class honours degree graduates, says Datuk Seri Dr Zambry Abd Kadir.
The Higher Education Minister said the review is important to reassess the actual definition and standards of "first-class honours" so implementation of loan repayment exemptions is fairer and more transparent.
He said these were temporarily suspended to give the Higher Education Ministry time to review the terms and conditions of this policy.
"This is not to deny the rights of any party. We will review it so that those who truly meet the first-class honours category are eligible to receive the refund exemption," he said after attending the 2025 Malay Language Academic Awards Ceremony here on Tuesday (Oct 14).
Zambry said the reassessment involves aspects of quality, academic integrity and uniformity of terms of reference to ensure fairness between public (IPTA) and private (IPTS) higher education institutions.
"We do not want significant differences between universities but there must be a solid basis for determining qualifications.
"This is important because there are more than 390 private higher education institutions nationwide, so the definition of 'first-class honours' needs to be standardised," he said.
Zambry said monitoring public varsities is easier because it is under the direct supervision of the government through the Education Ministry.
He stressed that granting loan repayment exemptions to first-class honours degree graduates will continue after the review and evaluation process is fully completed in 2026.
Prime Minister Datuk Seri Anwar Ibrahim, when tabling the 2026 Budget, announced that the government had agreed to exempt PTPTN loan repayments for all students from low- and middle-income families who obtain a first-class honours bachelor's degree at public varsities, which will benefit around 6,000 borrowers with an allocation of RM90mil per year. – Bernama
