Government Outlines Categories of PTPTN Defaulters Barred from Overseas Travel

If you have an unpaid PTPTN loan and are planning an overseas trip, you might want to settle your dues first.

The Government is tightening travel restrictions for National Higher Education Fund Corporation (PTPTN) borrowers who have failed to repay their loans. This move is part of ongoing efforts to encourage repayment and reduce the country’s growing education loan debt.

Photo via Malay Mail

According to the Budget 2026 summary, two categories of borrowers will be barred from travelling abroad:

• Those earning over RM6,000 per month with arrears exceeding five years

• Those who are working overseas but have not been making repayments

As of the end of 2024, total unpaid PTPTN loans have reached more than RM11 billion. Out of this amount, RM5 billion comes from borrowers who have never made any repayment at all.

While action is being taken against defaulters, the Government is also introducing new initiatives to support students from lower-income backgrounds.

During the Budget 2026 announcement on 10 October, Prime Minister Datuk Seri Anwar Ibrahim said that 5,800 students from low-income families studying at public universities (IPTA) will receive free PTPTN education, with an allocation of RM120 million.

Additionally, students from low- and middle-income families who graduate with First-Class Honours degrees at IPTA will have their PTPTN loans fully waived.

Anwar also reaffirmed the Government’s stance on implementing travel restrictions for borrowers who continue to avoid repayments.

Last year, the Ministry of Higher Education (MOHE) revealed that over 430,000 PTPTN borrowers, including many who have been working for years, have still not started repaying their loans.

PTPTN was established to help Malaysians from all backgrounds pursue higher education without the burden of immediate financial strain. By repaying the loans, borrowers ensure that the same opportunity can be extended to future students who need financial assistance.

Taking responsibility for repayment is not just about fulfilling a personal obligation. It also supports the sustainability of Malaysia’s education funding system and helps build a fairer, more inclusive future for the next generation.