PUTRAJAYA: The government is reviewing the criteria for National Higher Education Fund Corporation loan repayment exemption for first class degree graduates.
Higher Education Minister Datuk Seri Dr Zambry Abd Kadir said this review aims to ensure only truly deserving students qualify for the exemption.
He stated that the policy review will reassess the actual definition and standards of the first class category.
The implementation of the exemption is temporarily suspended during this review period.
“This review is not to deny the rights of any party,“ he told reporters after attending the 2025 Malay Language Academic Awards Ceremony.
Zambry emphasised that the ministry will ensure those who genuinely meet first class standards receive the repayment exemption.
The reassessment involves aspects of quality, academic integrity and uniformity of terms of reference.
This process aims to ensure fairness between public and private higher education institutions.
“We do not want significant differences between universities, but there must be a solid basis for determining qualifications,“ he explained.
Zambry noted that standardising the first class definition is crucial given Malaysia has over 390 private higher education institutions.
He mentioned that monitoring public institutions is easier as they fall under direct government supervision.
The minister stressed that the exemption policy will continue after the review process completes next year.
Prime Minister Datuk Seri Anwar Ibrahim announced this exemption during the 2026 Budget tabling last Friday.
The exemption applies to first class honours bachelor’s degree graduates from public institutions from low and middle income families.
Approximately 6,000 borrowers will benefit from this initiative with an annual allocation of 90 million ringgit. – Bernama
