(Kuala Lumpur, 12th) Starting next year, students from poor and hardcore poor families who are registered in the e-Kasih data system and are studying at public higher education institutions will have their National Higher Education Fund Corporation (PTPTN) loans converted into scholarships.
PTPTN Chairman Datuk Seri Norliza pointed out that this initiative, included in the 2026 national budget, reflects the government's care for the welfare of underprivileged students and demonstrates its commitment to ensuring inclusive access to higher education.
In a statement, she said this move will help alleviate students’ financial burdens and allow them to focus on their studies.
When tabling the 2026 budget on Friday, Prime Minister Datuk Seri Anwar announced an annual allocation of RM120 million to provide free education for 5,800 children from poor families studying at public higher education institutions.
When tabling the 2026 budget on Friday, Prime Minister Datuk Seri Anwar announced an annual allocation of RM120 million to provide free education for 5,800 children from poor families studying at public higher education institutions.
The government has also agreed to exempt all students from low- and middle-income families, who obtain first-class honours bachelor’s degrees at public institutions, from their PTPTN repayment obligations. This is expected to benefit about 6,000 borrowers, with an annual allocation of RM90 million.
Norliza mentioned that the PTPTN loan exemption is to recognize outstanding students, and that the government remains committed to nurturing high-quality graduates and encouraging students to focus on their studies and strive for excellence.
She added that further details on the implementation of various measures in the budget will be announced in the near future.
For borrowers who are able to repay but are avoiding repayment by working overseas, a travel ban will be implemented, she said. This move is to maintain PTPTN’s financial sustainability and ensure that future generations continue to enjoy higher education loan facilities.
“PTPTN is a loan that must be repaid in order to ensure the sustainability of funds for new borrowers; hence, the government will impose travel restrictions on defaulters.”