KUALA LUMPUR, March 15 — Putrajaya does not plan to extend National Higher Education Corporation (PTPTN) scholarships to graduates earning upper second-class honours, Deputy Higher Education Minister Datuk Dr Mary Yap said.

Currently, the PTPTN converts the study loans of first-class degree holders to a de facto scholarship.

Yap told Parliament that, as of December, the government has exempted 41,706 borrowers from repaying RM1.2 billion in study loans.

"Therefore for the time being, the ministry is not planning to widen the repayment exemption for those who only obtained upper second-class," Yap said during Question Time in the Dewan Rakyat.

She was responding to a question from Jasin MP Datuk Seri Ahmad Hamzah.

The policy was introduced in 2003.

DAP MP Ong Kian Ming last year called for the exemption to be discontinued, arguing that top graduates were likely to secure better paying jobs and be more able to repay their loans.