BEGINNING next year, student loans issued by the National Higher Education Fund Corporation (PTPTN) to public university students from households registered under the e-Kasih poverty database will be converted into full scholarships.
The initiative, announced by Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2026 last Friday, is expected to benefit over 5,800 students from poor and hardcore poor families, with a dedicated annual allocation of RM120 million.
PTPTN Chairperson Datuk Seri Norliza Abdul Rahim said the measure is aligned with the government’s commitment to ensuring inclusive access to higher education and reducing the financial burden on underprivileged students.
“This initiative allows students from vulnerable backgrounds to fully focus on their studies without the pressure of long-term debt,” she said in a statement today.
As part of the government’s broader reform agenda, additional incentives were also announced, including full loan repayment exemptions for students from the B40 and M40 income groups who graduate with First-Class Honours degrees from public universities.
“The government recognises and rewards academic excellence while promoting equity in education. This shows the administration’s focus on producing high-quality graduates,” Norliza added.
Further details on the implementation of the scholarship conversion scheme will be announced by PTPTN in the near future.
To ensure the sustainability of the PTPTN fund for future generations, Norliza reiterated that student loans, in principle, must still be repaid — with targeted enforcement measures now in place to address defaulters.
“Travel restrictions will be applied specifically to those who are financially capable, particularly those working abroad, yet continue to neglect their loan repayments,” she said.
Meanwhile, the government has also committed RM90 million annually to support loan repayment exemptions for another 6,000 students from low- and middle-income families who attain First-Class degrees.
Norliza said the new initiatives reflect the values of the Malaysia MADANI framework and demonstrate the government’s focus on public welfare and sustainable national education.
“As an agency under the Ministry of Higher Education, PTPTN welcomes the measures outlined in Budget 2026 and expresses its deepest appreciation to the government for its continued support for students and borrowers,” she said. - October 12, 2025
