Mon11202017

LAST_UPDATEMon, 20 Nov 2017 2am

Guide to the PTPTN Education Loan: Disbursement

PTPTNPTPTNPREVIOUSLY, SaveMoney.my covered the application process of the PTPTN’s Education Loan. This week we discuss its disbursement. 

Disbursement of PTPTN Loan

Just like any other type of loan, you have to know the ins and outs of the loan before committing your name on the dotted line! For those who already have a PTPTN loan, keep on reading to know how to get a lower rate for your future repayment.

Loan Amount - How much will I get?

It all depends on your institute of education, education level and your courses. Basically, there are three types of loan schemes:

·         Full Amount :  Parents’ income less than RM4,000 per month

·         Partial Amount : Parents’ income between RM4,000 to RM5,000 per month

·         Tuition Fees Only : Parents’ income more than RM5,000 per month

If the maximum loan amount is still insufficient to cover the cost of tuition fees, then prospective students will have to ensure they are able to get alternative funding to cover the shortfall.
Disbursement Period

PTPTN itself is a corporate body which communicates with the IPTs, therefore students who have the PTPTN loan approved need not worry about the timing of the loan disbursements for the tuition fees as this will be taken into account by PTPTN. If all the necessary offer documents and agreements have been completed, the first disbursement will be made within 21 working days of the date of receipt of the documents. The approved disbursement will be credited directly into the student’s bank account.

For students getting Tuition Fee Loan Amounts only, PTPTN will disburse the funds directly to the IPT. For those with the Full Amount, the residual amount of money that will be debited into each students’ account each semester follows this formula:
Residual Amount into Student’s Bank Account = Full Amount – Tuition Fees – Insurance Deductions – Loan Advance Deductions (where applicable)
 
Insurance Deductions

The PTPTN ELS includes loan insurance to cover the loan issued by the PTPTN in the event of the borrower’s death. Under the concept of group coverage, the amount of the loan issued by PTPTN to all borrowers will be fully protected from takaful operators appointed by PTPTN for every five (5) years. Therefore, if you choose to take a loan with PTPTN, the insurance deduction will be as such:

·         RM0.74 per year on each RM1,000 disbursed (for loans received in 2012 and later)

·         RM0.40 per year on each RM1,000 disbursed (for loans received between 1997-2011)
 
Loan Advance Deduction (WPP deduction)

The Loan advance (WPP) was implemented in 1999 to assist needy students who have received IPTA offers for the first time. The WPP is part of the total loan and is given earlier to enable students to make preparations before registering at the IPT.  It is disbursed to these students one week before the date of registration at the IPTA. The grant of WPP is subject to the following conditions:

·         Malaysian citizens

·         The total family income is less than RM4,000

·         Never previously received WPP or PTPTN loan
 
General Disbursement Rule

When your application have been approved, here’s how long it takes to get credited to your account:

·         First semester – Loan debited within 2 weeks of registration and confirmation from the IPT

·         2nd semester onwards – Loan debited after confirmation from IPT that student is still enrolled in the course and has obtained GPA of 2.0 in the past semester

Just like any other loan, you have to repay what you borrow in the PTPTN Scheme. Stay tuned next week when SaveMoney.my covers the loan repayment.

*Balkish Rosly is an Investigative Journalist of SaveMoney.my, an online consumer advice portal which aims to help Malaysians save money through smart (and most of the time painless) savings in their daily banking, technology, and lifestyle spending habits.