PETALING JAYA (Aug 20, 2025): Applications for the National Higher Education Fund Corporation first-class honours loan exemption will reopen on Sept 1, but the government says there are no plans, for now, to revive the travel ban on loan defaulters.
Higher Education Deputy Minister Datuk Mustapha Sakmud told the Dewan Rakyat the loan exemption scheme, introduced in 2001, remains available for top graduates.
“The education fund website has been updated and applications will reopen on Sept 1. Eligible graduates, especially those with first-class honours, may reapply,” he said.
Responding to Kepong MP Lim Lip Eng on the discontinued travel ban, Mustapha said the matter was still being studied but no decision had been made.
“We may revisit it, but at present there are no plans to impose a travel ban. Our priority is to help borrowers meet their obligations,” he added.
Muar MP Syed Saddiq Syed Abdul Rahman meanwhile, flagged repayment struggles among graduates earning below RM2,200, citing a 2020 proposal for deferred or phased payments based on income levels.
Mustapha said the government was open to such restructuring.
“Setting income thresholds is a good idea. The education fund already allows repayment restructuring so borrowers can pay according to their means. Our aim is to ease their burden and be compassionate.”
He added that the education fund operates on a revolving fund dependent on repayments and urged those in difficulty to seek help directly from the agency. As of July this year, the education fund has approved loan disbursements worth RM59.44 billion for 3.1 million B40 borrowers.