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First-class degree grads to be exempted from PTPTN loan repayment

Prime Minister Ismail Sabri Yaakob says this is to encourage the youth to work hard and score well in their studies.

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Students sit with their laptops in a dorm at a university in Kuala Lumpur. Photo: Bernama
Students sit with their laptops in a dorm at a university in Kuala Lumpur. Photo: Bernama

The government will reintroduce the National Higher Education Fund Corporation (PTPTN) loan repayment exemption for graduates who earn first-class bachelor's degrees beginning from 2019.

Prime Minister Ismail Sabri Yaakob said the privilege would be given to deserving graduates regardless of economic status, race or religion.

He voiced hope that PTPTN could discuss the allocations involved with the finance ministry.

"This is as an encouragement to the children of the Malaysian Family to work hard and obtain the best grades in their studies," he said at PTPTN's 25th Silver Jubilee Celebration in Kuala Lumpur today.

Ismail also advised all borrowers who have yet to settle their PTPTN loans to do so immediately so that the study loans can continue to be given to new students.

"Repayment of study loans is important to ensure the continuity and availability of the funds for new students who are also heirs of the nation," he said.

The prime minister said as of last month, over two million or 82.04% of PTPTN borrowers had settled their loans totalling RM17.8 billion.

"To those who were committed to repaying their loans, I thank you," he added.

In the 25 years since its establishment, he said, PTPTN had become the country’s main tertiary education fund corporation committed to fulfilling its mandate.

He said it had helped 3.67 million people pursue their studies with a disbursement of loans totalling RM66.87 billion so far.