PUTRAJAYA: The Public Service Department (PSD) has opened applications for the Second Phase of the Academic Merit-Based Convertible Loan Option (PBU Academic), effective today until Aug 31.
In a statement on Wednesday (July 1), PSD said more than 59,000 former PSD-sponsored students who graduated on or before Dec 31, 2024, are eligible to apply for the initiative.
Introduced by PSD on June 1, 2025, PBU Academic is a new sponsorship model that determines loan repayment rates based on students’ academic performance.
"This model introduces a new approach by shifting loan repayment determination from the place of service to students’ academic achievements,” it added.
To date, more than 11,000 new students have received sponsorship under the PBU Academic model.
Meanwhile, over 23,000 existing students under the Place of Service Merit-Based Convertible Loan (PBU 2016) model participated in the First Phase Option, which was implemented from January to March 2026.
According to PSD, the implementation of the Second Phase expands the benefits of the Academic PBU model to a larger group of former PSD-sponsored students who meet the eligibility requirements.
Eligible applicants include students who graduated on or before Dec 31, 2024, have no outstanding loan repayments or Overpayment Allowance (ETB), and remain within their contractual service period with the government, government-linked companies (GLCs), or private companies.
Students with outstanding loan repayments or ETB may submit applications once all arrears have been fully settled.
However, the option is not available to students whose sponsorship was terminated due to a breach of the 2016 PBU Agreement, those who have fully completed their loan repayments or service contracts under the 2016 PBU scheme, or those who failed to complete their sponsored studies up to the equivalent of a First Degree.
The PSD also advised eligible students to update their contact details through the Malaysian Student Engagement Online Feed (MySELF) Portal before submitting their applications within the stipulated period.
The agreement document must be signed online via the ePROMISE system, followed by payment of stamp duty through the LHDNM MyTAX system within 30 days of signing.
It said any repayments made under the 2016 PBU scheme prior to the implementation of this option will not be refunded.
Former PSD-sponsored students who meet the requirements are encouraged to check their eligibility status and submit their applications through the MySELF Portal before the closing date. - Bernama
