Students who have secured a place at their higher learning institutions of choice do not have to worry about financial burden to settle tuition fees. There are several organizations and bodies in Malaysia offering education loans to students who have secured a place for Diploma or Degree programmes in their university of choice. Generally, these organizations offer loans at low interest rates to ease applicants’ financial burden.
Among some of the more popular organizations are National Higher Education Fund (PTPTN), MARA Study Loan, KOJADI and MIED. PTPTN is highly recommended for all students as it has the lowest interest rate. It was established under the National Higher Education Fund Act 1997 to provide education loans to students to settle partial or full tuition fees. Besides that, the amount granted usually covers a student’s living expenses throughout their studies in the institutions.
Applicants must have gained admission into local institutions during the date of application. All applicants may apply for the education loans as long as they passed SPM with credits in any 3 subjects. Students must be a Malaysian citizen and are not allowed to have other sponsors or financial aid. PTPTN usually grants RM5,000 per year for students pursuing Diploma courses while students who are pursuing their first degree are entitled to RM16,000 per annum.
Meanwhile, MARA Study Loan Programme was incepted in 1966 when Majlis Amanah Rakyat was established. The loan scheme is open to students who are pursuing ‘3+0′ programmes in local private institutions. Unlike PTPTN, MARA Study Loan is only available for Malaysian Bumiputras. Applicants must have gained a place in a recognized private institution accredited by Malaysian Qualifications Agency (MQA).
Those who are pursuing Degree programmes must be below 30; applicants studying Master’s degree, Medicine or any dentistry specialization must be below 40 years of age and those pursuing Doctor of Philosophy (PhD) shall not exceed 45 years of age. The joint income of your parents or spouses should not exceed RM80,000 annually. The loan given by MARA usually covers tuition fees and allowance. But then again, the amount of loan varies based on applicant’s financial background.
KOJADI established in 1981 is also another popular alternative for students to obtain education loans. The objective of KOJADI is to ensure students in need can pursue higher education by providing sufficient loans to applicants. All applicants must be a member of KOJADI with RM100 initial shares and must possess additional shares between RM500 and RM2,000 shares for each and every child. The applicant must name a child under the loan scheme. The amount of loan will not exceed RM35,000 and will be disbursed several times during the whole course of study.
MIED (Maju Institute of Education Development) was established in 1984 to provide education loans for students to pursue their studies in higher learning institutions. To date, MIED has become the leading education loan provider for Malaysian Indian community. Students applying for MIED loans must passed SPM examination and have at least five credits in any subject. The amount of loan given covers 100 percent tuition fees.