Education is one of the most valuable investments individuals can make for their life and future. However, pursuing education to earn a diploma or a degree can be a costly path for many since students are required to pay for their tuition fees and sometimes buy textbooks while also being able to afford the cost of living. 

Nonetheless, there are various avenues where an individual can seek financial resources to ensure that they can accomplish their education goals without constant financial worry. An example of a financial resource that many students can take advantage of is student loans, like PTPTN.

What is PTPTN?

PTPTN, an abbreviation for Perbadanan Tabung Pendidikan Tinggi Nasional, is an agency under Malaysia’s Ministry of Education that provides educational financing for students. 

The PTPTN loan is a type of student loan that caters specifically to Malaysian students looking to continue post-secondary education at local institutions. PTPTN loans are one of the top choices for students, primarily due to the low-interest rate.

Who can apply for PTPTN loan?

To be eligible and apply for a PTPTN loan, an individual must meet all of the following requirements:

• Be a Malaysian citizen.
• Aged 45 years and below at the time of application.
• Already have an offer to study at a local higher education institution, regardless of whether it is public or private (like colleges, universities, and polytechnics).
• Pursue a course accredited by the Malaysian Qualifications Agency.
• Pursue a course approved by the Malaysian Ministry of Education and registered with PTPTN.
• Meet the entry requirements and qualifications for the course they intend to pursue.
• Have more than one year remaining for their duration of study.
• Have no other sponsors for your education.
• Have SSPN-i savings account before applying. An SSPN-i savings account is a savings scheme designed by PTPTN for higher education purposes to encourage parents and guardians to build savings for their children’s higher education.

What courses does PTPTN cover?

This loan covers students seeking foundation degrees, diplomas, bachelor’s degrees, and postgraduate studies. Pre-university courses, like A-Levels, Australian Matriculation, and Canadian Pre-University, are not eligible for PTPTN loans.

In private institutions, foundation courses, diplomas, and bachelor’s degrees are all eligible for PTPTN loans, but postgraduate studies and professional courses are not. On the other hand, diplomas, bachelor’s degrees, postgraduate studies, and professional courses are all eligible for PTPTN loans at public institutions.

How much loan does PTPTN offer?

The amount offered by a PTPTN loan depends on three factors: 

• Household income 
• The type of institution the student is attending
• The course being pursued.

These loans are needs-based, meaning that lower-income families can borrow a larger amount, and the loans offered for private institutions are higher than public institutions since the tuition fees are typically higher. Also, science-related courses tend to have higher loan amounts than humanities courses.

PTPTN loan summary for private institutions

PTPTN loan summary for public institutions

For example, a student intending to pursue a degree in medicine from a private institution and comes from a household that has an income of less than RM 4,000. The student would be eligible for a PTPTN loan worth RM 50,000.

How to apply for a PTPTN loan?

Step 1: Go to a bank and open an SSPN-i account. This can be done at any PTPTN counter or banks like Maybank, Bank Islam, BSN, CIMB Bank, Agrobank, or Bank Rakyat.

Step 2: Open a savings account at a panel bank. Students would need to open a savings account with a specific bank based on the institution of their choice. Fof more information about which panel bank to open a savings account at, refer to the Semakan Jadual Permohonan dan Bayaran Pinjaman page. Once there, enter your preferred course or institution of choice, and then the relevant panel bank will be shown.

Step 3: Purchase a PTPTN number from Bank Simpanan Nasional (BSN), which will cost you RM 5 and is valid for six months.

Step 4: Complete the online application on the PTPTN website based on the instructions provided.

When to apply for a PTPTN loan?

Here is a table outlining the online application periods for PTPTN loans:

How to check PTPTN application status?

The PTPTN application status can be checked on the website six working days after the closing date of the online application.

How to cancel a PTPTN application?

To cancel a PTPTN application, go to the PTPTN website and download the ‘Borang Pembatalan dan Penolakan Tawaran Pinjaman Pendidikan PTPTN.’ Fill up the form and submit it to any PTPTN office.

Other things to know about PTPTN loan

If you’re considering applying for a PTPTN loan, here are some things to keep in mind.

You need a 2.0 GPA to maintain your loan

If a student has a GPA less than 2.0, they will not receive PTPTN loans for that particular semester, and their loan disbursement will be suspended. The loan will be reinstated if grades improve and GPA is once again above 2.0.

There is a flat interest rate of 1%

PTPTN has a very low-interest rate. However, it’s still a loan that must be repaid.

For example, a student has a total loan amount of RM 50,000 and has a repayment period of 15 years.

Interest Amount: RM 50,000 x 1% x 15 years = RM 7,500 (RM 41.67 per month)

Total Monthly Repayment: (RM 50,000 + RM 7,500) / 15 years = RM 319.44 per month

Based on this example, the PTPTN loan’s monthly interest is RM 41.67. This amount is meagre compared to the loans offered by banks and credit facilities. Furthermore, students who can settle their loans within 12 months of their studies would not incur the 1% interest and would only need to repay the amount borrowed. 

You need to start repaying the loan 12 months after graduating

The repayment period for the PTPTN loan begins 12 months after a student completes their studies. The loan repayment period would depend on the total loan amount.

• Students must repay total loan amounts less than RM 10,000 within 5 years.
• Students must repay total loan amounts from RM 10,000 to RM 22,000 within 10 years.
• Students must repay total loan amounts from RM 22,000 to RM 50,000 within 15 years.
• Students must repay total loan amounts of more than RM 50,000 within 20 years.

Students struggling to make their repayments can always go to a PTPTN branch and negotiate to restructure their loan repayments.

Loan defaulters may be blacklisted

Not repaying the PTPTN loan can bring about serious consequences. The failure of people to repay their loans has resulted in the government imposing and enforcing some measures to deter defaulters. 

The main consequence is being blacklisted in the Central Credit Reference Information System (CCRIS). This system stores financial information on individuals who borrow money across Malaysia, and banks usually utilise this data to determine if an individual is a good borrower. Therefore, should an individual be blacklisted, they would immediately be rejected upon applying for credit cards, home loans, or personal loans.

PTPTN loan can be converted to a scholarship

Students who receive First Class Honours for their degrees can convert their PTPTN loans into a scholarship, so there is no need to reimburse the loan they have taken out.

PTPTN FAQ

How to apply for a PTPTN for the second time?

Fill up a manual PTPTN application form and prepare to submit the following documents:

• Bantuan Prihatin Nasional (BPN)/ Bantuan Prihatin Rakyat (BPR) supporting documents OR Latest 1 month payslip of guardian or parents.
• A copy of guardian or parent’s NRIC.
• PTPTN pin number (purchase from BSN/ online).
• SSPN account number (purchase online for RM20).
• Two pieces of stamp duty (purchase at the post office, each RM10).
• Maybank Savings Account (open at Maybank with IUMW Offer Letter).

How to apply for a PTPTN loan for a master’s degree?

Individuals can apply for a PTPTN loan for a master’s degree from the PTPTN website. However, it is important to remember that PTPTN loans are only eligible for postgraduate courses at public institutions.

Can I apply for PTPTN to study overseas?

No, PTPTN loans do not cover or fund overseas programmes, even though an individual meets all the criteria to be eligible for one.

Will PTPTN cover twinning programmes?

PTPTN will only cover the cost of studying that is done in Malaysia. Therefore, upon transfer to a university overseas, a student would need to find a different source of funding.

When is the PTPTN loan application deadline in 2022?

The application period for the first batch is from 1st to 30th September, while the second batch is from 1st to 31st October. The deadline for applying for the first batch is 30th September, and the deadline for the second batch is 31st October.

Conclusion

For some students, the PTPTN loan is one of the few ways they can finance their tertiary education. Thus, we’ve made sure that here at KDU, students are eligible for PTPTN loans. For more information, please view this comprehensive document, where individuals can view the list of programs approved for PTPTN loans.