Finishing your degree is a massive achievement – congratulations! Like most Malaysian graduates, you probably have one financial obligation tagging along into working life: your PTPTN loan. 

Miss payments, and you’ll struggle to get approved for car loans or home loans. Fall too far behind, you might even be barred from leaving the country.

When Repayment Starts And What You’ll Pay

Your PTPTN repayments start 12 months after you complete your studies. PTPTN requires you to start paying without sending a reminder, so it’s important to mark your calendar.

Once month 13 hits, service charges (Ujrah) start accumulating on your outstanding balance. The payment deadline each month is the 27th, and any payment after this date gets posted to the following month’s statement.

How Much You’ll Actually Pay

Your monthly payment is calculated based on the total amount you borrowed and your income level. When PTPTN processes your loan, they create a Jadual Bayaran Balik (JBB) or Repayment Schedule based on your loan balance and financial capacity.

Example scenario for a typical graduate:

• Total PTPTN loan of RM45,000
• Monthly gross income of RM3,500
• Estimated monthly payment between RM175 to RM280
• Repayment period of up to 15 years at minimum payment

Paying below this amount means you’re in arrears, but you’re encouraged to pay more to settle faster and pay less in total Ujrah.

Fresh graduate tip: If you’re still job hunting or earning less during probation, you can apply for restructuring once you’re on the Ujrah scheme rather than falling into arrears.

Understanding Your Repayment Scheme

PTPTN operates two main loan schemes.

Scheme	Annual Rate	Type	Restructuring Available?
Conventional	3.0% – 5.0% p.a.	Interest	No
Ujrah	1.0% p.a.	Fixed fee (Shariah-compliant)	Yes

Conventional Scheme works like a traditional loan with interest charges of 3.0% to 5.0% per annum. If you took out your loan several years ago, you’re likely on this scheme.

Ujrah Scheme (Recommended) is Shariah-compliant with a fixed fee of 1.0% per annum, offering real cost savings over the life of your loan.

The conversion is straightforward through myPTPTN, there’s no penalty, and loan restructuring is only available for Ujrah loans. If you’re on the Conventional scheme, you must convert to Ujrah before you can restructure your payments. Convert to Ujrah within your first few months of graduation to qualify for better repayment flexibility down the line.

Setting Up Automated Payments

You can set up automated payments in two ways:

Salary Deduction: Your employer deducts payment directly from your salary and can process this online through Portal Majikan Online. This is the easiest option for fresh graduates because your HR department handles everything.

Direct Debit: Your bank automatically deducts the payment from your account on a set date each month. This works better if you’re freelancing or working for a smaller company without automated payroll systems.

Either automated method ensures you’ll never risk accidental arrears, you’ll qualify for higher discounts when available, and PTPTN rewards predictable cash flow.

If automated payments don’t work for you, other options include the myPTPTN app, online bank transfers, PTPTN counters, Bank Islam, Bank Rakyat, Pos Laju, 7-Eleven, or EPF Account 2 withdrawal.

If You’re Struggling With Repayments

If your financial situation changes and you can’t maintain payments, you have two options.

Deferment (pausing payments)

Deferment is available for specific circumstances, but Ujrah continues accumulating during the deferment period. 

Further Studies: Apply through myPTPTN if continuing full-time education. If you’re pursuing a master’s right after your degree, apply for deferment immediately.

Unemployment: Maximum deferment is 24 months from your original repayment due date.

Emergency Deferments: PTPTN implements special payment breaks during national emergencies like COVID-19 or major floods.

Restructuring (reducing monthly payments)

If you can’t afford your current monthly payment, restructuring reduces your payments by extending the repayment period. To qualify, you’ll need to be on the Ujrah scheme, settle a portion of your arrears if you’re in default, and apply through myPTPTN.

Many fresh graduates find their starting salaries lower than expected. Restructuring lets you adjust your repayment to match your actual income rather than defaulting.

Consequences Of Non-Payment

Your PTPTN repayment habits play a bigger role than you might expect, especially when you start applying for credit or financing in the future.

CCRIS Listing And Credit Score Damage

PTPTN reports borrower status to Bank Negara’s CCRIS. Arrears drop your credit score substantially, blocking home loans, car loans, credit cards, and personal loans.

This matters more than you think as a fresh graduate. Planning to buy your first car? Apply for a credit card? Get a personal loan for your wedding? Your PTPTN repayment record affects all of these applications.

If you’re not sure what your current credit standing is, learn how to check your credit score for free and understand how your credit score impacts major financial decisions.

Legal Action And Travel Restrictions

PTPTN follows a set process that starts with reminder letters, moves to a Notice of Demand, then civil lawsuits. Court judgments can result in wage garnishment or asset seizure, with legal costs added to your debt.

Travel restrictions are being reinstated in 2026 under Budget 2026. The policy was first introduced in 2015, abolished in May 2018, and is now making a comeback. It targets high-income defaulters and overseas workers avoiding repayment.

Discounts And Incentives For Repayment

PTPTN offers several discounts and incentives that can help you save a significant amount if you plan your repayments smartly.

The 12-Month Grace Period Waiver

If you settle your entire loan within 12 months after completing studies, PTPTN waives 100% of all service charges. For a RM40,000 loan, this could save thousands of ringgit.

Smart graduate strategy: If you receive an angpow windfall during your first Raya or Chinese New Year after graduation, or if your parents offer financial help, consider using it to clear your PTPTN completely within that 12-month window.

Annual Budget Discounts

Budget 2024 offered a 15% discount for salary deduction or scheduled direct debit, and a 10% discount for full lump-sum payment or 50% lump sum.

As of December 2024, no new discount period has been announced. These announcements typically come in October during the annual Budget presentation, so watch for updates around that time.

EPF Account 2 Withdrawals

You can use EPF Account 2  funds with no withdrawal limits or fees to settle your PTPTN loan. However, EPF provides compounding returns, so weigh this against long-term growth. Taking out RM20,000 now means potentially losing decades of compound interest on that amount.

As a fresh graduate, your EPF balance is probably small right now. Once you’ve accumulated RM15,000 to RM20,000 in Account II over a few years, using EPF becomes a viable option during PTPTN discount periods.

Building Good Financial Habits Alongside PTPTN Repayment

Your PTPTN loan is probably your first big financial commitment, and how you manage it now can set the tone for your money habits for years to come.

Create a post-graduation budget: Factor your monthly PTPTN payment into your budget from day one, just like rent or phone bills. Don’t let lifestyle inflation eat into your repayment capacity.

Track your debt-to-income ratio: Fresh graduates should aim to keep total monthly debt payments (including PTPTN) below 40% of your income. This means if you earn RM3,000 monthly, your total debt payments shouldn’t exceed RM1,200.

Start an emergency fund: Aim to save at least three months of expenses. This prevents you from missing PTPTN payments during unexpected situations like job loss or medical emergencies.

Prioritise high-interest debt: If you have credit card debt or personal loans alongside PTPTN, tackle the highest-interest debt first. Credit card interest (15-18% p.a.) costs you far more than PTPTN’s 1% Ujrah.

Taking Control Of Your PTPTN Loan

Your PTPTN loan doesn’t have to hang over your head for decades. It’s manageable when you know how the system works.

Set up salary deduction in your first month of work, convert to Ujrah if you haven’t already, and keep an eye out for discount announcements around each year’s Budget in October. Monitor your CCRIS regularly through Bank Negara’s free eCCRIS portal, and never pay below your JBB amount.

If you’re struggling, apply for restructuring immediately before arrears pile up, consider deferment if unemployed (maximum 24 months), and contact PTPTN Careline at 03-2193 3000.

The worst thing you can do is ignore it. Thousands of graduates successfully manage their PTPTN repayments while building careers, saving for goals, and living full lives. Take control from day one, stay informed about discount opportunities, and you’ll be fine.

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