An agreement is established between the Government and students sponsored by MOHE which binds them to comply with the terms of the signed agreement. This is a mechanism  enforced  by MOHE to ensure that the contracted students comply with the agreement to complete their studies within the sponsorship period, and contribute to the country forthwith. In this regard, sponsored students pursuing studies at institutions of higher learning must complete their studies within the approved sponsorship period and serve the Government in compliance with the agreement in force.

Failure to comply with the conditions stated in the offer letter from MOHE and the contract document will result in a student being subject to a claim for damages. Claims for damages are imposed on students who fail to complete their studies within the stipulated sponsorship period. The amount of compensation imposed is between RM120,000 to RM160,000 for studies in local institutions, and the actual cost of expenses incurred by the Government for studies abroad.

Balance Statement Letter

The contract defaulter may apply in writing for a Balance Statement Letter through a letter/email/fax. The latest official statement of the balance of compensation will be issued within three (3) working days from the date of receipt of the application.

Loan Repayment

Claims for Overpayment of Compensation/ Overpaid Allowance (Elaun Terlebih Bayar, ETB)

Update Contract Defaulter’s Information/Status

If the borrower’s address has changed or the borrower has not received any letter of claim for repayment within six (6) months of completing studies, the borrower’s information can be updated by completing the update form (download form).

It is the responsibility of the borrower/guarantor/next-of-kin to immediately notify the Ministry in the case of the borrower’s death/disability/chronic illness to avoid a letter of reminder/non-compliance to repayment schedule being issued to the borrower. The notification can be made by completing the borrower’s death/disability/chronic illness notification form (download form).

• Information Update Form;
• TPP Borrower’s Death/Disability/Chronic Illness Notification Form.

The completed form can be emailed to This email address is being protected from spambots. You need JavaScript enabled to view it. or mailed to the following address:

Seksyen Penguatkuasaan dan Kutipan Balik
Bahagian Biasiswa
Aras 2, No. 2, Menara 2, Jalan P5/6, Presint 5
62200 W.P. Putrajaya
Tel: 0388706000
Faks: 0388706839

Postponement / Rescheduling of Loan Repayment

A contract defaulter may be considered for postponement of compensation payment/service period/rescheduling of instalment in the following cases:

• Having critical health issues but with a view to recovery
• Pursuing studies to a higher level (with confirmation letter from university/institution concerned)
• Still unemployed

Application for Payment Settlement Confirmation

The contract defaulter may apply in writing for the Payment Settlement Confirmation via letter/email/fax to be issued accordingly by submitting the following:

• The borrower’s full name;
• Identity card (IC) number (as in the contract);
• Telephone number;
• Postal address.