KUALA LUMPUR: The Public Service Department’s (PSD) newly announced academic merit-based sponsorship model, which takes effect on June 1, has been welcomed as a progressive step towards easing graduate debt and strengthening the higher education ecosystem.
National Student Consultative Council (MPPK) president Muhammad Amir Asyraf Mohd Sabri said the initiative reflects the government’s ongoing efforts to strengthen the national education ecosystem in line with the Malaysia Madani vision.
“The new academic merit-based education sponsorship model is a progressive and strategic initiative aimed at reducing the financial burden on graduates while boosting student motivation in higher education institutions,” he said.
“This move deserves recognition as it showcases the government’s commitment, particularly from the Higher Education Ministry led by Datuk Seri Dr Zambry Abd Kadir and Prime Minister Datuk Seri Anwar Ibrahim, to empower the country’s education system.
“This approach not only provides financial relief but also acknowledges academic excellence in a fair and structured manner,” he said.
On Sunday, PSD said in a statement that under the new model, PSD-sponsored students, excluding those in medicine, dentistry, and pharmacy, will be eligible for loan repayment reductions based on their academic performance.
Students studying medicine, dentistry, and pharmacy will receive full loan exemptions, provided they complete their studies and fulfil their government service contracts.
Under the revised repayment structure, students with a final cumulative grade point average (CGPA) of 3.75 to 4.00 will repay just 5 per cent of their loan, while those with a CGPA between 3.50 and 3.74 will repay 10 per cent, and those scoring between 3.00 and 3.49 will repay 15 per cent.
Students who graduate with a CGPA above 3.00 but take longer to complete their studies will be required to repay 20 per cent. Those who score below a 3.00 CGPA or fail to complete their studies will be obliged to repay the loan in full.
According to JPA, the revised model will lower education loan repayment obligations for students under its sponsorship.
Additionally, students who gain employment in the public sector in roles aligned with their qualifications will be exempt from repaying any outstanding balance.
The new programme, named PBU Academic, will apply to all new sponsorship recipients from June 1 onwards, excluding Dermasiswa scholarship holders, while students under the 2016 model will have the option to switch to the PBU Academic scheme in phases beginning Jan 1 next year.
Muhammad Amir added that the merit-based approach is also expected to improve academic discipline among students.
“Students will understand that strong academic performance directly translates into financial benefits for their future,” he said.
“Indirectly, this policy will help strengthen a culture of academic excellence and contribute to producing high-quality, competitive graduates ready for the global stage.
“Moreover, it has the potential to reduce students’ dependence on high-interest commercial loans while cultivating early awareness of financial responsibility and future planning among graduates.”
© New Straits Times Press (M) Bhd
