The government is open to reconsidering PTPTN loan repayment exemptions for students graduating from private higher learning institutions, the Dewan Rakyat was told today.
Deputy Higher Education, Minister Mustapha Sakmud said the group had previously been eligible for exemptions, particularly during the early phase of the Pakatan Harapan administration in 2018, but are no longer covered under the current targeted scheme.
“At this stage, only graduates from B40 and M40 households studying in public universities qualify for the exemption. The mechanism was adjusted and private institutions were later excluded,” he said.
However, Mustapha noted that the Higher Education Ministry (MOHE) and the Finance Ministry (MoF) were reviewing the policy.
“I believe both ministries will look into the matter again to determine whether exemptions can be extended to private university students,” he added.
He was responding to Tan Kar Hing (PH–Gopeng), who queried the rationale behind discontinuing exemptions for first-class honours graduates from private universities, and whether Putrajaya intended to reassess the matter.
Under Budget 2026, the government introduced a targeted PTPTN loan waiver applicable to first-class honours graduates from public universities within the B40 and M40 categories.
Higher Education Minister Datuk Seri Zambry Abdul Kadir had earlier explained that the temporary suspension of waivers for private university students was necessary to harmonise the definition of ‘first class’ across public and private institutions.
Tan also proposed that PTPTN exemptions be broadened to include graduates serving in rural or critical sectors. Mustapha described the suggestion as ‘very good’ but said implementation would depend on PTPTN’s financial sustainability and funding model.
The deputy minister also disclosed that PTPTN’s borrower database does not track updated monthly incomes, relying instead on household income recorded at the time of application.
As of Oct 31, 2025, a total of 911,788 STR-recipient borrowers had fully repaid RM13.89 billion in loans, while another 967,756 in the same group still owed RM10.23 billion.
STR, or Sumbangan Tunai Rahmah, is financial assistance extended to low- and middle-income Malaysians.
-EDUCATION TVET ASIA