PTPTN Education Loan Scheme is no longer foreign among students who aim to pursue tertiary education in local higher learning institutions. It was established to offer education loans to students in need to ease their financial burden in settling their tuition fees. The scheme offers loan for students to pay full or partial of tuition fees. The amount also covers a student’s living expenses throughout their studies in the institutions.
With the establishment of this loan scheme, more students from low income classes can pursue their tertiary education. Generally, the loan is open to students who are pursuing their studies at diploma, first degree, master, doctorate and professional courses in local institutions founded based on Universities and Universities Colleges Act 1971, Institut Teknologi MARA Act 1976, Private Higher Education Institutions Act 1996 and Education Act 1996.
Applicants must fulfill certain criteria to be eligible for the loan. First of all, applicants must be a Malaysian citizen and below the age of 45 during the date of application. Students must passed SPM with credits in any 3 subjects or passed SPM for Community College Certificate and Polytechnic Diploma with CGPA 3.0 or above. Students must gain entry into any of the local institutions to pursue courses that are approved by Malaysian Qualifications Agency (MQA) before handing in the application.
Bear in mind that the remaining period of study during the date of application must exceed a year. The loan scheme requires two guarantors – biological father and mother. From January 1, 2008, PTPTN loans will only be considered and granted to students with SSPN account with a minimum of RM3,000 savings for parents with a monthly income of RM2,000 and above. Meanwhile, for parents with less than RM2,000 income, the account must have RM500 savings.
Fortunately, the term was removed after awhile. Nevertheless, applicants must have a SSPN account with a minimum savings of RM20 before submitting the application. A gentle reminder for all – SSPN account must be active for 2 weeks before the date of application. Applicants must ensure that they do not have any other sponsors or scholarships. The total loan amount would not exceed RM65,000 for both arts and science students.
Beginning from March 1, 2007, students who are pursuing part-time studies or long distance learning at diploma, first degree, master, doctorate or any other professional courses may apply for PTPTN education loan. The loan will be disbursed on a semester by semester basis. The approval for loan period only lasts for a month. Therefore, applicants must sign the agreement within the period to obtain the loan or else the offer will be canceled.
Borrowers are encouraged to repay the loan without waiting for a letter from PTPTN. Previously, exemption of repayment is applicable for students who obtain first class honours for loans approved before July 2005. Based on Budget 2010, Prime Minister Datuk Seri Najib Tun Razak announced that PTPTN loans can now be converted to scholarships for students who graduate with first class honours from 2010 onwards.