Travel ban targets only financially capable PTPTN defaulters, not fresh grads or low earners, says deputy minister

KUALA LUMPUR, Feb 9 — Only 0.7 per cent of 417,158 National Higher Education Fund Corporation (PTPTN) are currently being listed for travel restrictions, Deputy Higher Education Minister Adam Adli Abd Halim said today. 

He said under the Budget 2026, the government will only impose travel restrictions only on borrowers who are financially capable of repaying but deliberately defaulting repayment. 

“This includes those who are working overseas and are financially capable of repaying. 

“The travel ban will only target high-income or financially capable borrowers with specific criteria, and will not affect fresh graduates, those without income, or borrowers from bottom 40 (B40) and middle 40 (M40) income groups,” Adam told Parliament today. 

He was responding Umno’s Maran MP Datuk Seri Ismail  Abd Muttalib who asked the ministry on its move to help graduates who have yet to find permanent jobs but have been blacklisted from going abroad for failing to pay PTPTN arrears, while students from B40 families are forced to work while studying due to insufficient PTPTN assistance.

For borrowers who are facing repayment difficulties, Adam said their loans will be undergo a restructuring process based on their financial ability, with repayment periods allowed up to the age of 60.

As for unemployed borrowers with no income, he said repayment deferments are allowed until they secure employment or for a maximum period of two years, after which restructuring options may be considered.

“This applies the same for borrowers who choose to pursue further studies, they are allowed to defer repayments throughout the duration of their new studies,” he added.

On broader policy direction, Adam said access to higher education remains a key focus for the government, particularly for students from B40 and M40 households as well as persons with disabilities (OKU), through maximum PTPTN financing and expanded scholarship initiatives.

Starting this year, in-line with an announcement by Prime Minister Datuk Seri Anwar Ibrahim, he said the Higher Education Ministry through PTPTN will introduce the e-Kasih Scholarship for 10,000 eligible students — a significant increase from the 5,800 recipients announced previously.

“To further strengthen the government’s commitment, borrowers from B40 and M40 groups studying at public universities (IPTA) who obtain first-class bachelor’s degrees will be given full loan repayment exemptions,” he said.

He added that about 3,000 students with disabilities studying in IPTA, polytechnics and community colleges will receive fully free education, in-line with the government’s policy framework.

“And this is only the beginning. More initiatives will be introduced,” he said.

Addressing questions regarding “promises” to abolish PTPTN debt, Adam said the government must balance fiscal realities with what it is able to commit.

He said a total of RM77.5 billion in loans have been disbursed to help more than 4.26 million students to date.

“Taking into account the fiscal position and financial commitments, the government cannot simply implement blanket loan abolition. 

“Instead, we are starting with free education for those who need it most — including the 10,000 scholarship recipients, 3,000 OKU students, and RM90 million allocated for outstanding performance students,” he said.

He stressed that the government’s approach is not merely about managing or abolishing debt, but about expanding free education opportunities at present, which requires both political will and fiscal capacity.

“The government has not ruled out future options, but stressed the need to ensure PTPTN remains financially sustainable.

“This (travel ban) is not a blanket policy like in the past. Only specific cases are considered — about 3,000 cases compared to the 417,000 borrowers are being listed for the travel ban,” he said.