KUALA LUMPUR: Students who obtain first-class honours at private universities deserve the same National Higher Education Fund Corporation (PTPTN) loan repayment exemption as their counterparts in public universities, says MCA Youth Education Consultative Council chairman Ong Chee Siang.
He said the exclusion of graduates from private higher education institutions from the PTPTN loan repayment exemption had placed the affected students in a difficult position.
“The original intention of this policy, introduced in 2001, was to encourage students, regardless of their background, to continue striving for academic excellence,” he said.
But the policy change, which took effect from Jan 1 this year, had impacted students enrolled in private universities and working towards achieving first-class honours to qualify for the exemption, he said.
Under Budget 2026, it was stated that the government had agreed to waive PTPTN loan repayments for bachelor’s degree students from low- and middle- income families who graduated with first-class honours from public universities.
Speaking to reporters yesterday, Ong said the exemption would spur students to improve their academic performance.
“Many students have already enrolled in college before 2026. Their goal was to obtain first-class honours and apply for the loan exemption to reduce the financial burden on their families,” he said.
Ong said the policy had also affected those who had to pursue their studies at private institutions because of limited places at public universities.
A finance and investment graduate from Universiti Tunku Abdul Rahman, who wanted to be known only as Lin, questioned why the eligibility for the loan exemption was based on the year of graduation instead of the date when students signed their loan agreements.
She said students had relied on the existing policy when making decisions about their education and financial commitments.
Lin, 24, acknowledged the financial pressures faced by PTPTN but said students from private universities should not be excluded from the exemption simply because of differences in institutional grading systems.
“If the government feels that the measurement standards are inconsistent, it should review them and provide a reasonable unified standard instead of directly using those differences to deprive excellent students of the benefits,” she said.
Suben Rao, 21, who was pursuing international business at Universiti Tenaga Nasional, said he had to drop out in the first semester due to financial difficulties and concerns over the loss of the exemption.
“We are not asking for special treatment. We are just asking for equal recognition of our hard work, regardless of which university we attend,” he added.
Lawyer Andy Teoh, who attended the press conference, also questioned the policy implementation to students who had signed their PTPTN loan agreements before the change was announced.
“The government needs to review the policy and consider allowing students who had signed their PTPTN agreements before the change to remain eligible under the previous terms,” he said, acknowledging however that the government had the authority to change its policies.
Ong said MCA planned to compile the complaints and submit a memorandum to the relevant government departments and the Prime Minister’s Department.
