Topics: Debt, Loan Pages: 6 (4683 words) Published: April 7, 2013
Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) is a statutorybody responsible for managing the financing of the education of students inpublic higher education institutions and the private sectors in Malaysia. Itwas was established under the National Higher Education Fund Act 1997(Act 566) and is effective from 1st July 1997. PTPTN became operational on1st November 1997 at Bangunan Wisma Chase Perdana, Off JalanSemantan, Damansara Heights, Kuala Lumpur to replace JabatanPerkhidmatan Awam (JPA), which previously provided assistance foreducation loans for students PTPTN functions are to manage disbursement for the purpose of highereducation, and to collect loan settlement, collect deposits, design and offersaving schemes for the purpose of saving for higher education and carryout any other functions given to the PTPTN under any written legislation. Itwas established to ensure efficient financing for students who are eligibleto pursue studies at institutions of higher learning (IPT) in line withgovernment aspirations that no student should be denied access to highereducation because of financial reasons. The loan scheme will enablestudents to fully or partially pay their fees and their subsistence for theduration of their study in the IPT. Thus, the scheme provides greateropportunities to students to continue their tertiary education Following are the criteria for students who eligible to apply for educationloans: •Malaysian citizens;

•Not exceeding 45 years of age on date of application;
•Passed Malaysia Certificate of Education (SPM) with credits in any 3subjects; •Passed SPM for Community College Certificate and PolytechnicDiploma graduates with CGPA 3.0 and above; IPTA/IPTS/Polytechnic students must register to pursue coursesapproved by the IPT Management Department (IPTA/IPTS)/PolytechnicManagement Department and Community College of the Ministry of HigherEducation; •

IPTS students must obtain the Accreditation Certificate from theMalaysian Qualifications Agency (MQA). The course and AccreditationCertificate approval period must still be valid on the date of application; •

All students must possess entry requirements determined by theMinistry of Higher Education to pursue the course. For students withqualifications that differ from that stipulated, verification that the saidqualification is equivalent to the required qualification must be obtainedfrom departments or agencies specified as above; •

 The remaining period of study upon application must exceed oneyear; •
PTPTN loans require two (2) guarantors that must consist of biologicalfather and mother of student regardless of the parents age and income; •
From 18th May 2009 onwards, SSPN saving terms for PTPTN loansapplication will be discontinued; •
Have no other sponsor; and

Loan overall total must not exceed RM65,000.00Students who are qualified to be given the loans are depending on thelevel of financial ability of their family and they must follow full timeprogram of first level degree or diploma (pre-degree) in any institution of higher education. Once the eligible students received the loads, thepayment of loans will be suspended if the students obtain a GPA of lessthan 2.0 or the students defer studies based on the contract that has beenagreed by each other. The borrower is encouraged to pay back the loan without waiting for theletter of claim. The period of loan repayment is based on the total loantaken as follows:i.RM10,000 and below - 60 monthsii.RM10,001 to RM22,000 - 120 monthsiii.RM22,001 to RM50,000 - 180 monthsiv.RM50,001 and above - 240 monthsAdministrative costs of 4% annually will be charged on the date of loanrepayment up to 31st December 2003. From 1st January 2004, theadministrative cost is reduced to 3% annually on the remaining monthlyloan. Administrative costs will be calculated 6 months after completion of study or termination of loan as specified in the signed agreement. Noreduction is given in administrative...
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