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Loan Repayment/ Compensation

Human Capital Development Division

EDUCATION LOAN REPAYMENT OF THE PUBLIC SERVICE DEPARTMENT (PSD) FOR SPONSORSHIP IN YEAR 2016 AND ABOVE

  • The government has introduced a new sponsorship model starting in 2016. The new sponsorship model is in the form of Convertible Loan (PBU 2016). This implementation is in line with the principle of return on investment (ROI) to the country in ensuring that the government will acquire the best talent for public service. In addition, this principle can create accountability to the state. The loan agreement will be enforced according to the following five conditions:
    • Conversion of loan to service contract if the student serves the government/statutory body after graduation within the period specified in the agreement;
    • The loan will be converted to a full scholarship and exempted from repayment if the student serves the government after graduation within the period specified in the agreement;
    • 25% repayment from the total loan received if the student works at a government-linked company (GLC) after graduation within the period specified in the agreement;
    • 50% repayment from the total loan received if the student works at a private company in Malaysia after graduation within the period specified in the agreement; and
    • Full loan repayment if the student works abroad.

  1. The discount (from the total loan amount) will be given to any borrower who meets the following criteria:
    • Completed the period of service either with a GLC/private company as specified in the agreement; and
    • Completed the period of service at the same GLC/private company within the minimum period specified in the agreement.

  1. For borrowers who meet all the conditions above and wish to apply for consideration of repayment reduction, each application must be accompanied by the following documents (verified):
    • Letter of request for repayment reduction;
    • Employer confirmation letter;
    • Excerpt from Companies Commission of Malaysia; and
    • Copy of the loan offer letter from the PSD.

  1. All these documents MUST be submitted through email to This email address is being protected from spambots. You need JavaScript enabled to view it. or mailed to the following address:

Collection and Penalty Management Unit,
Human Capital Development Division,
Public Service Department,
Level 3, Block C2, Complex C,
Federal Government Administrative Centre,
62510 PUTRAJAYA.

 

FEDERAL EDUCATION LOAN/ FEDERAL SCHOLARSHIP PENALTY CLAIM STARTING FROM YEAR 2016

  1. Officers/students sponsored under the “Federal Scholarship/Federal Education Loan” whose sponsorship has been terminated for breaching the terms of agreement will be subjected to penalty claim.

  1. A Notice of Claim will be issued to the officer/student and the claim must be settled in full within 60 DAYS/ 25 DAYS from the date of issuance (subject to signed agreement).

 

REPAYMENT METHOD

Attachment for PSD’s Education Loan Repayment Method and Penalty Claim
https://docs.jpa.gov.my/docs/images/BMI/Kaedah_Bayaran_Balik_Pinjaman_GantiRugi_JPA.pdf

 

INQUIRIES

Any inquiries regarding repayment of loan/penalty claim can be directed to 03-8000 8000 or via email at This email address is being protected from spambots. You need JavaScript enabled to view it..

Further information on issues of loan repayment and penalty claim can be referred to the Frequently Asked Questions section
(https://www.jpa.gov.my/soalan-lazim-sm/pembangunan-modal-insan/pengurusan-kutipan-dan-ganti-rugi)

Human Capital Development Division