Free education for low-income students under PTPTN scheme

BUDGET 2026 | Beginning 2026, the government will introduce a free education initiative under the National Higher Education Fund Corporation (PTPTN), aimed at easing the financial burden on low-income families.

Under the scheme, 5,800 students from poor households who are pursuing studies at public universities will be granted full education funding.

In tabling Budget 2026 at the Dewan Rakyat today, Prime Minister Anwar Ibrahim said the government has allocated RM120 million annually for the initiative.

“PTPTN was founded out of a commitment to lift the nation’s children out of poverty through education. Since its establishment, PTPTN has paved the way for millions of students to pursue higher learning and transform their families’ lives,” he said.

Anwar also announced that the government will impose overseas travel restrictions on borrowers who are financially able and employed abroad, but have been negligent in repaying their loans.

In his speech, he said the government has also agreed to exempt PTPTN loan repayments for all students from low- and middle-income families who graduate with First Class Honours bachelor’s degrees from public universities.

“This initiative will benefit around 6,000 borrowers, with an annual allocation of RM90 million,” he added.

On Aug 19, Bernama reported that the government may review measures to restrict overseas travel for PTPTN loan defaulters.

Deputy Higher Education Minister Mustapha Sakmud reportedly said this in response to a supplementary question from Kepong MP Lim Lip Eng, on whether the government would reinstate restrictions on hardcore defaulters who refuse to repay despite having the means to do so.

Pakatan Harapan, as part of its 14th general election (GE14) manifesto, had pledged to defer PTPTN loan repayments for borrowers earning less than RM4,000 a month and to abolish the policy of blacklisting defaulters.

The travel ban on PTPTN loan defaulters was subsequently lifted in June 2018 after Harapan assumed power in Putrajaya, with around 420,000 names removed from the blacklist.

However, Putrajaya has been unable to implement the RM4,000 salary threshold for borrowers to begin repayments, stating the country’s fiscal state did not allow for this.

Defaulters also remain free to travel abroad.

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