Kuala Lumpur: The government must restore the PTPTN loan repayment exemption for outstanding graduates of private universities and colleges to ensure students are treated fairly regardless of where they pursue their higher education, says Stampin MP Chong Chieng Jen.
Speaking during the committee-stage debate on Budget 2027 in Parliament, the DAP Sarawak Chairman and DAP Parliamentary Leader described the discontinuation of the exemption for private university graduates from 1 January 2026 as highly unfair, particularly to students who had taken PTPTN loans in 2025 or earlier and were already pursuing their bachelor’s degrees.
He said these students had enrolled with the understanding that achieving First Class Honours would qualify them for loan repayment exemption, only to have the policy changed while they were still studying.
Chong pointed out that the exemption was originally introduced to recognise academic excellence and encourage students to achieve outstanding results.
He rejected the Ministry of Finance’s reported justification that reduced allocations had left insufficient funds to continue the exemption.
He urged the ministry to disclose the annual number of First Class Honours graduates from public and private higher education institutions, as well as the estimated allocation required to reinstate the exemption for eligible private university graduates.
He argued that the amount required would likely be only a small fraction of PTPTN’s outstanding loan arrears.
Chong also questioned the government’s decision to extend concessions to borrowers who had failed to repay their loans while withdrawing incentives from students who had excelled academically.
“How is it reasonable to extend leniency to loan defaulters while taking away incentives from students who have worked hard and achieved excellent results?” he questioned.
He called on the government to restore the exemption for all eligible First Class Honours graduates from public and private institutions, stressing that students who had taken PTPTN loans before the policy change should not be disadvantaged by the sudden withdrawal.
“The government should reward excellence, not punish it,” he said.
