28-04-2025
- Business
- New Straits Times
New merit-based PSD loan scheme to reward top students from June
KUALA LUMPUR: A new academic merit-based sponsorship model for pre-service training programmes will come into effect on June 1, replacing the 2016 merit-based Convertible Loan for service placements.
In a statement, the Public Service Department (PSD) said 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 in the fields of medicine, dentistry, and pharmacy will receive full loan exemptions, provided they complete their studies and fulfil their government service contracts.
"This initiative aligns with the principles of Madani Ihsan, which seeks to cultivate human capital rooted in academic and personal excellence among eligible Malaysians," it said.
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.
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.
Students under the 2016 model will have the option to switch to the PBU Academic scheme in phases beginning Jan 1 next year.
The PSD also advised students under the 2016 scheme, who have completed their studies and are currently repaying their loans, to suspend payments from June 1 until the conversion option becomes available.
