KUALA LUMPUR (Aug 19): Applications for National Higher Education Fund Corporation (PTPTN) loan exemptions will reopen in September for graduates with first-class degrees, according to Deputy Higher Education Minister Datuk Ts Mustapha Sakmud. 

Mustapha said the PTPTN website was temporarily down for maintenance, and will be back online starting Sept 1.

“The exemption scheme, introduced in 2001, has benefitted 133,159 borrowers, amounting to RM2.9 billion [to date],” he said in Dewan Rakyat, in reply to Lim Lip Eng (PH–Kepong), who had asked about PTPTN’s strategy in addressing nearly 400,000 borrowers who have not made repayments for more than a decade, involving RM5 billion in loans.

The announcement also came a day after PTPTN chairman Datuk Seri Norliza Abdul Rahim reaffirmed in a Facebook statement that the exemption policy remains valid, stressing that graduates who meet the criteria are still eligible.

On a separate matter, Mustapha said the government currently has no plans to reinstate travel restrictions for borrowers in default, though the measure remains under review. 

“This matter is still under consideration, but for now, no decision has been made. We may review it, but at present, there are no plans to impose travel restrictions on borrowers,” he told the House. 

The travel ban was abolished in 2018, following criticism that it unfairly penalised borrowers. However, repayment rates remain a concern, raising questions about PTPTN’s long-term sustainability.

Higher Education Minister Datuk Seri Dr Zambry Abd Kadir has previously said that the ministry would not rely solely on an overseas travel ban to boost repayments, but would instead adopt a comprehensive approach, weighing all relevant factors before deciding on further action.

Current initiatives include loan restructuring schemes and stepped-up reminders to encourage repayment. As of January, PTPTN had issued 2.1 million notices to delinquent borrowers.

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