PTPTN, the government-funded body which stands for Perbadanan Tabung Pendidikan Tinggi Nasional (National Higher Education Fund Corporation) is the go-to solution for school-leavers or those currently studying in a higher education institute as they are the main provider of education loans in Malaysia. If you have been thinking about getting a student loan to fund your course but are not sure how to start; here’s a basic guide.
Who can apply?
PTPTN loans are not just for fresh SPM grads, in fact anyone under the age of 45 is eligible. They must however be enrolled in a public (IPTA) or private (IPTS) institution that is accredited by the government. Applicants also cannot be receiving any other form of sponsorship and must have at least one year remaining in their course if they are already enrolled.
How do I apply?
Applications can be done online on PTPTN’s official website. If you are applying for the first time you will need to get a PIN number which cost RM5 and is available in Bank Simpanan Nasional branches. You will also need to register for a SSPN (National Education Savings Scheme) account. It cost RM20 to open an account and can be done at any Maybank and Bank Islam branch as well as various agents and service counters in KL Sentral or One-stop Centre. Once that’s, settled proceed to print out the application forms and submit it to PTPTN with your relevant documents. You will also be expected to cover postage and include at least two revenue stamps worth RM10.
Why didn’t they ask me how much I need?
Unfortunately the amount of your loan is
entirely up to the discretion of PTPTN but generally the chances of getting a
full loan versus a partial loan will depend on the total combined income of
your parents as well as your course, education level and institution.
My loan has been approved! What now?
Just like any loan, you will receive a letter of offer, which you will need to accept before PTPTN can disburse your loan. Expect the first disbursement to be made within 21 working days from the date your document is received. The amount you receive will depend on the approved amount which will be stated in your letter of offer. If your loan only covers your tuition fees, PTPTN will deal directly with your college/university. If you’ve been granted a full loan, however, it will be disbursed to you periodically each semester. Please note that you will also be charged a nominal fee for insurance as well. This applies to all applicants and is not optional.
When and how do I repay my loan?
You should start financing your student loan 6 months after you graduate. The tenure will depend on your total loan amount and course level if you are under sponsorship. PTPTN charges an administrative fee of 3% which is calculated based on your monthly balance. You can pay your installments over the counter or online to your relevant bank or PTPTN agent. Alternatively you may sign-up for a salary deduction scheme which is not only more convenient but cost effective too as the administrative cost is reduced to 1%. You can also use your savings from your EPF Account 2 to pay off your student loan although it is highly recommended that you use this as a last resort only.
PTPTN loans are also a viable option for working adults who are looking to further their studies. Instead of using your personal savings you can apply for a student loan instead. Just be aware that if you are planning to pursue a Masters or PhD, PTPTN will only offer you a loan for a course in a public university.