Top grads asked to repay amid PTPTN waiver freeze

PETALING JAYA: Anxious and frustrated, first-class honours graduates are appealing to the National Higher Education Fund Corporation (PTPTN) for clarity after being asked to repay their loans.

They believe they are entitled to a loan waiver under existing policies.

Ameen, 23, a graduate from a university in Kuala Lumpur, said she was shocked to receive the July 7 repayment notice.

“The repayment notice was unexpected and confusing.

“I feel betrayed, as I now need to spend part of my salary on student loans,” she said, adding that both her previous and ongoing attempts to appeal via PTPTN’s online portal were met with a “temporarily closed” notice.

She said it felt as though borrowers were being penalised for circumstances beyond their control.

“Even though we are ready to apply for the exemption, the system is closed and we are still expected to pay.

“I really hope this issue gets resolved so I can save money for my future – I have family commitments to cater to,” she said.

Wong, 23, also a graduate from KL, said PTPTN’s communication has lacked clarity.

“In the beginning, we knew that unlike before, the waiver is no longer automatic but based on application and approval. But now, we can’t even apply. We were never given a proper chance to appeal.

“Only when we enquire do they say the application isn’t open due to no government approval. We’re all fresh graduates – being suddenly forced to pay is financially and emotionally stressful,” she said.

In email notifications sent to borrowers last month, sighted by The Star, PTPTN provided repayment schedules as stipulated in loan agreements.

In response to complaints regarding the issue, it stated that the exemption application process and submission of supporting documents can only be carried out once the service – currently closed – is reopened.

In a separate response to parents, the agency reiterated that loan repayment exemption approval is subject to the government’s current financial position, and all borrowers must continue repayments during the temporary closure.

“No manual submission method or other channels are allowed,” the email read.

On June 3, an insider told The Star that the exemption application service for first-class honours graduates remains unavailable pending Finance Ministry approval.

“Applications to convert loans into scholarships for first-class honours graduates have not yet opened, and the approval date for borrowers to apply has not been confirmed.

“Borrowers will be informed once applications can be accepted,” said the insider.

In 2022, former prime minister Datuk Seri Ismail Sabri Yaakob announced that borrowers graduating with first-class honours from 2019 onwards would be eligible for loan waivers, regardless of economic status, race or religion.

The Star has reached out to PTPTN for comment.