The National Higher Education Fund Corporation (PTPTN) will begin converting education loans into scholarships for students from poor and hardcore poor students listed under the e-Kasih database, starting next year.
Image credit: Bernama
The initiative applies to students enrolled in public higher education institutions (IPTAs) and forms part of the Budget 2026.
The chairperson of PTPTN, Datuk Seri Norliza Abdul Rahim said the initiative demonstrates the government’s commitment to ensure the educational inclusivity and support the welfare of underprivileged students.
“This measure aims to ease the financial burden of students from poor families, enabling them to focus on their studies and achieve academic success,” she stated.
Financial aid and academic excellence recognition
The government has allocated RM120 million annually for this initiative, which is expected to benefit about 5,800 students from poor households studying in public universities.
PTPTN loan repayments will be fully waived for students from low and middle-income families who graduates with first-class honours degrees from public universities. The measure, costing around RM90 million per year, is expected to benefit 6,000 borrowers nationwide.
“The loan exemption recognizes academic excellence and reflects the government’s efforts to nurture high quality graduates,” Norliza said.
She also mentioned the further details on the implementation of both measures under Budget 2026 will be announced soon.
Ensure long-term fund sustainability
Meanwhile, Norliza addressed the concerns about borrowers who have financial capacity to repay but continue to default, especially those working abroad. She said travel restrictions would continue to be applied selectively of the PTPTN fund, allowing future generations to access higher education loans.
She emphasized that PTPTN remains repayable loan scheme. Maintained its sustainability is crucial to support future students.
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