Those affected, including defaulters working abroad, had also been given ample opportunity to negotiate loan repayment before such action was taken.
Student leader Danish Suhailey said that PTPTN, as an agency that provides opportunities for people to improve their standard of living through education financing, must be able to sustain its operations.
However, he said, PTPTN risks being unable to continuously fund students if borrowers, especially capable ones, refuse to settle their debts.
“Action has already been taken in a targeted manner, particularly against high-income earners and those who can pay but choose to avoid doing so,” the Universiti Sains Islam Malaysia student representative council vice-president said.
Danish was referring to Prime Minister Anwar Ibrahim’s announcement during the tabling of Budget 2026 that PTPTN borrowers who can afford to repay, or who work overseas but default on repayments, would face restrictions on traveling abroad from January 2026.
Anwar, who is also the finance minister, said then that PTPTN scholarships would be extended to 5,800 students from low-income families pursuing studies at public higher education institutions. The government has announced that RM120 million will be allocated annually for this purpose.
Under the Malaysia Higher Education Blueprint 2026–2036, the number of recipients will eventually be raised from 5,800 to 10,000 annually.
Commenting on the scholarships for students from low-income families, Danish welcomed the initiative, saying it could have both economic and social benefits.
“From an economic perspective, it can improve graduate employability and the supply of skilled workers.
“Students receiving these scholarships can also study with peace of mind without worrying about financial problems,” he added.
Meanwhile, the Malaysia Tourism Agency Association (Mata) urged the public to plan their finances more carefully and not neglect their responsibility to repay debts following the enforcement of the measure.
Its president, Khalid Harun, said this also applies to those intending to perform umrah or haj in the holy land.
“Mata understands the government’s decision to impose the travel ban. This is to encourage financial discipline and preserve public funds. Loan repayment is a responsibility that must be taken seriously.”
Khalid added that based on past experience, Mata believes PTPTN is open to negotiating with borrowers to ensure smooth arrangements for all parties.
“Negotiations are always open, provided borrowers show commitment to repaying their loans according to schedule,” he said.
Barjoyai Bardai of Malaysia University of Science and Technology was previously reported as saying that the targeted approach adopted by the government could reduce the burden of blanket subsidies and ensure education funds were channelled more efficiently.
“From a fiscal sustainability perspective, this approach reduces PTPTN’s liquidity risk and allows funds to be distributed according to the country’s financial capacity,” Barjoyai, the provost and dean of the university’s postgraduate studies centre, was quoted by Bernama as saying.
For PTPTN borrower Khairul Azman, 24, the financing scheme has helped many students pursue higher education and achieve a better life.
“So once they are employed and financially capable, it is only right to repay the loans consistently so that more people can benefit in the future.
“Measures such as travel restrictions should be enforced to serve as a reminder to persistent defaulters not to continue neglecting their responsibility to repay their loans,” he added.