LAST_UPDATESun, 22 Jul 2018 10am

Guide to the PTPTN Education Loan: Repayment

Perbadanan Tabung Pendidikan Tinggi Nasional Perbadanan Tabung Pendidikan Tinggi Nasional IN the previous weeks, has covered the application process of the PTPTN’s Education Loan, and its disbursement. But as it’s a loan, it will still have to be repaid, so let’s take a look at the repayment scheme.
Repayment of PTPTN Loan 
NOTE: In the 2013 Budget announcement, there was a discount off the loan on full repayment. 
Payback Period - When should you start paying back the loan?
Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) requires you to start paying your loan beginning 6 months after your graduation date, so make sure that you start paying off the installments for the PTPTN loan from that point in time to avoid going on the blacklist (after 3 reminders of course).
Starting from 1 January 2004, the repayment period will be set in accordance to your loan amount. So if you plan to take up PTPTN ELS, this is how your repayment period will look like:

Education Loan / Financing Amount

Repayment Period

RM10,000 and Below

60 Months (5 years)

RM10,001 to RM22,000

120 Months (10 years)

RM22,001 to RM50,000

180 Months (15 years)

Above RM50,001

240 Months (20 years)

Exemption From Loan Repayment
Good news if you’re a star student! PTPTN celebrates those who pass their degree with flying colours by giving them an exemption from loan repayment. Qualified candidates are those who complete their bachelor’s degree studies with first class honours, and make an application for exemption. However, borrowers from private institutions of higher learning are limited only to those who pursue courses accredited by the National Accreditation Board (LAN).
Failed / Discontinued / Changed Course or Cancelled Loan
In a worse-case scenario, what are the penalties for failed, discontinued, changed course or cancelled loan? Basically, borrowers who have failed, discontinued, changed course or obtained other sponsors have to pay off the lump-sum amount of their loan (and unfortunately the instalment method will not be allowed).
Administrative Costs
Between January 2004 and June 2008, PTPTN implemented a fixed administrative cost rate (the loan interest rate) of 3.00% p.a. on reducing balance for diploma and degree level courses; and 5.00% p.a. on reducing balance for masters, PhD and professional courses (implemented in March 2007). This administrative cost rate is in effect following the 6 month grace period immediately after graduation. If you choose to settle the loan in full prior to this 6 month grace period expiring then you will not be charged any administrative cost.
From 1 June 2008 onwards, all new PTPTN loan applicants will be migrated to the 1% p.a. ‘Ujrah’ fee and existing PTPTN loanholders will have the option to switch from the existing 3% p.a. on reducing balance to a 1% p.a fixed flat rate.
And just what exactly is this Ujrah that promises to help with your loan repayment? To know more about the Ujrah scheme, stay tuned for the final instalment of’s guide to the PTPTN Education Loan Scheme!
 * Balkish Rosly is an Investigative Journalist of, 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.