KUALA LUMPUR: Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) loans for students from poor and hardcore poor families registered in the e-Kasih database will be converted to scholarships starting next year.
PTPTN chairman Datuk Seri Norliza Abdul Rahim said this initiative under Budget 2026 demonstrates the government’s concern for student welfare and commitment to inclusive higher education access.
“This measure is expected to ease the financial burden on students and give them space to focus fully on their studies,” she said in a statement today.
Prime Minister Datuk Seri Anwar Ibrahim announced during Friday’s Budget 2026 presentation that free PTPTN education would benefit 5,800 students from poor families studying at public higher education institutions with an annual allocation of 120 million ringgit.
Additionally, PTPTN loan repayment will be exempted for students from low and middle income families who obtain First Class Honours Bachelor’s Degrees at public universities, with a 90 million ringgit annual allocation benefiting approximately 6,000 borrowers.
Norliza stated that the PTPTN repayment exemption serves as recognition for excellent students.
“The government continues to emphasise efforts to produce high-quality graduates in Malaysia,” she said.
Students are encouraged to focus fully on their studies and achieve academic excellence according to Norliza.
She mentioned that further details regarding implementation of initiatives under Budget 2026 will be announced soon.
Regarding travel restrictions abroad for borrowers who can afford to work overseas but are negligent in repayments, she emphasised the government’s focus on PTPTN fund sustainability to ensure future generations can access higher education financing.
“PTPTN is a loan facility that needs to be repaid to guarantee fund continuity for new borrowers,” she said.
Travel restrictions abroad will be implemented specifically for borrowers with outstanding debts according to Norliza. – Bernama
