1. Should I borrow from PTPTN?
The answer in short is yes. PTPTN interests rate are astoundingly low as compared to study loans offered by other banks or credit facilities. Furthermore, approval rates are high and a sure way to lighten some of that burden on your parents back.
2. Should I settle payments earlier?
The latest PTPTN interest is calculated using a 1% flat interest rate. Let say your loan amounts to RM50,000, payable in 15 years. Using the Personal Loan settlement calculator, you will see that the savings you get for settling your loan in full is actually under 1% per year. You are better off dumping that cash in an FD account where your yield is between 3-4%.
However, there are times where you can benefit from early settlements. From time to time, the government announces rebates for PTPTN settlements. The latest example can be seen from Budget 2015. A 20% rebate (only on your outstanding amount) is given for lump sum settlement before 31 March 2015. A similar rebate was also announced in Budget 2013.
So continue to patiently make your monthly payments and plan your settlement wisely should you choose to do so.
3. Can I apply for PTPTN if I am on a scholarship or sponsorship?
If you are under automatic tuition fee discount (including 100% waiver) by your university, most likely you are still eligible for a PTPTN loan. However, if you fall under a third party sponsorship program, there might be special clauses in the scholarship agreement that might state otherwise.
If you need solid confirmation, always refer to your university office or the officer in charge to clear out the terms and conditions.
4. Is there any way I can be exempted from PTPTN repayment ?
Yes! You get exemption if you graduate with first class honours in your degree. If you already have your fees waived by the university and you still graduate with first class honours, your total prize will be the savings on tuition fee plus the PTPTN loan.
Seriously, why would you not study hard?
The criterias for PTPTN exemptions are:
a) PTPTN loan beneficiary has attended full-time course.
b) Beneficiary has completed their studies within the period as stated in the financing agreement. If you achieved a CGPA of 4.00 but extended your term for even one semester, you will not be eligible!
c) PTPTN financing does not overlap with other sponsorships.
d) Financing recipient must submit the complete application within twelve (12) months from the date of the convocation.
e) The course attended has been accredited by MQA
For those who could not care less about grades, take caution. Score a CGPA below 2.0, your PTPTN will be revoked forever! Better to just aim for that first class honours.
5. What problems will I face if I default in my repayment?
PTPTN borrowers will be blacklisted if they fail to make any payments after several reminder notices. This will result in PTPTN defaulters being restricted from leaving the country and renewing their passports. The latest figure of PTPTN defaulters who are in the travel blacklist amounts to over 85,000.
Additionally, the government has also warned that PTPTN defaulters might be blacklisted under CCRIS. This might affect your credit ratings should you wish to obtain a housing loan in the future.
We highly recommend that regular consistent payments are made to avoid having your name blacklisted. Its definitely worth the effort.
Learn more about The Real Consequences Of Not Paying Back Your PTPTN Loan!
6. Are there any other benefits of opening an SSPN account other than for PTPTN application purpose?
Parents who deposit money on behalf for their children into their SSPN account can enjoy tax relief incentives of up to RM6,000 based on the nett amount deposited in a year. If their parents file separate assessments, they can enjoy up to RM6,000 tax relief each and if the parents file for joint assessments, they can enjoy joint tax relief of RM6,000.
Conclusion
The mission and objective for PTPTN is applaudable and welcomed. However, it is crucial that the system remain sustainable for future generations to come. Defaulters of loans can make it hard for future borrowers and risk being blacklisted. So do yourself and the future generation a favour by being a responsible payee. It goes a long way for those who need them.
Learn more about "Is PTPTN The Best Study Loan Available For Malaysian Students Today?".
