Kuala lumpur: The Public Service Department (PSD) has launched the application process for the second phase of the Academic Merit-Based Convertible Loan Option (PBU Academic), available from today until August 31. This initiative targets over 59,000 former PSD-sponsored students who graduated on or before December 31, 2024, providing them with an opportunity to apply for this new loan model.
According to BERNAMA News Agency, the PBU Academic model, introduced by PSD on June 1, 2025, is a novel sponsorship scheme that calculates loan repayment based on students' academic performance rather than their place of service. The department's statement highlights that this model offers a shift in determining loan repayment, focusing on academic achievements as a criterion.
Since its inception, more than 11,000 new students have benefited from the PBU Academic sponsorship. Additionally, over 23,000 existing students under the previous Place of Service Merit-Based Convertible Loan (PBU 2016) model engaged in the First Phase, which was available from January to March 2026.
PSD officials stated that the Second Phase aims to extend the benefits of the Academic PBU model to a broader cohort of former PSD-sponsored students who satisfy the eligibility criteria. To qualify, applicants must have graduated by December 31, 2024, have no outstanding loan payments or Overpayment Allowance (ETB), and remain within their contractual service period with the government, government-linked companies (GLCs), or private firms.
Those with unsettled loan repayments or ETB are advised to clear all dues before applying. The option excludes students whose sponsorship was revoked due to a breach of the 2016 PBU Agreement, those who have completed their loan repayments or service contracts under the 2016 PBU scheme, and those who did not finish their sponsored studies equivalent to a First Degree.
Eligible students are urged to update their contact information via the Malaysian Student Engagement Online Feed (MySELF) Portal before applying. The agreement must be signed online through the ePROMISE system, with stamp duty payable via the LHDNM MyTAX system within 30 days of the agreement signing.
The PSD clarified that any repayments made under the 2016 PBU scheme before this option's implementation are non-refundable. Former PSD-sponsored students meeting the criteria are advised to verify their eligibility and submit applications through the MySELF Portal by the deadline.
Source: BERNAMA News Agency