If you’ve been ignoring your PTPTN loan repayments, you might want to think twice before planning that overseas trip; the government is looking to reinstate the travel ban for borrowers who’ve failed to settle their study loans.
According to the Budget 2026 summary document, the move is part of the government’s latest effort to strengthen repayment discipline and ensure fairness to those who’ve been paying diligently.
Cracking down on long-overdue borrowers
This time around, the proposed blacklist isn’t aimed at everyone. Instead, it will focus on two specific groups of borrowers who have been persistently defaulting despite being financially capable of paying.
The two targeted categories are:
- Those who have loan arrears exceeding five years and earn more than RM6,000 a month.
- Borrowers who are currently employed overseas.
By narrowing the criteria, the government hopes to send a clear message, those who can afford to repay but choose not to will face consequences.
Billions still unpaid
The scale of unpaid PTPTN loans remains a serious concern. Parliamentary data revealed that as of the end of 2024, the total amount owed by borrowers who have either never made a repayment or failed to pay consistently had exceeded RM11 billion.
Even more alarming, over RM5 billion of that figure comes from individuals who haven’t paid a single sen since taking out the loan, reported Malaysiakini
These staggering numbers underline why the government is taking a tougher stance, not just to recover funds, but to keep the PTPTN system sustainable for future students.
What happens next
While the plan has yet to be officially enforced, the government’s renewed push signals that travel restrictions may soon make a comeback for chronic defaulters.
Officials are expected to share more details on the implementation timeline, enforcement mechanism, and potential exemptions in the coming months.
Until then, it might be wise for borrowers to start reviewing their PTPTN status before their next trip abroad gets unexpectedly cancelled.
