15th August 2025 - 3 min read
Recent graduates who achieved first-class honours are expressing confusion and frustration after receiving notices from PTPTN to begin repaying their loans. Many of these graduates believed they were eligible for a loan waiver, but have found that the application process for this exemption is unavailable, leaving them in a difficult financial position, as reported by local media.
According to graduates who have been affected, PTPTN has started sending out repayment schedules as outlined in their original loan agreements. This has caused confusion, as a government policy allows for graduates with first-class honours to apply for an exemption, effectively turning their loan into a scholarship.
What’s confusing grads is that the online portal to apply for this waiver is currently closed. This means that while these graduates may be eligible for the exemption, they have no way to formally apply for it. Until the application system is reopened and their exemption is approved, they are still contractually obligated to begin making loan repayments.
The sudden demand for repayment is placing significant financial and emotional strain on new graduates who are just starting their careers. Many had planned their finances with the understanding that their PTPTN loan would be waived.
In the report from The Star, one graduate, Ameen, shared her shock at receiving the repayment notice. She explained that the unexpected expense disrupts her budget, which includes family commitments. Her attempts to apply for the waiver through the official PTPTN portal were unsuccessful, as the system displayed a notice that it was “temporarily closed”.
Another graduate, Wong, highlighted the lack of clear communication from PTPTN. She noted that graduates were aware that the waiver was no longer automatic and required an application. With the system being closed without a clear timeline for reopening, they feel they have not been given a fair opportunity to apply.
In response to enquiries, PTPTN has clarified that the application service for the loan waiver is temporarily closed pending approval from the Ministry of Finance. The organisation has confirmed that all borrowers must continue with their loan repayments as scheduled during this period.
PTPTN also stated that the submission of exemption applications and supporting documents can only be done once the online service is officially reopened. According to email responses sent to borrowers and cited in news reports, no manual submissions or applications through other channels will be accepted.
The policy to exempt first-class honours graduates from PTPTN loan repayments was reintroduced in 2022. The former prime minister, Datuk Seri Ismail Sabri Yaakob, stated that borrowers graduating with first-class honours from 2019 onwards would be eligible for the loan waiver. This eligibility was intended to apply to all graduates who met the academic requirement, regardless of their economic status, race, or religion.
For now, affected graduates are advised to monitor the official PTPTN website for any updates on the application process. In the meantime, it is important to manage your loan repayments to avoid any negative impact on your credit history. Understanding how loan repayments affect your CCRIS report is very important to maintaining a healthy credit score.
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