While every student wants a scholarship, in any shape or form, not everyone will receive one. The reality is, that while you can try to apply as many as you want (and you should, if you meet the requirements), sometimes, it may not work out. However, don’t be discouraged. While it is indeed demotivating, there is another option of course, and that would be an educational loan. In Malaysia, the two famous ones are Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) and Yayasan Bank Rakyat’s Pembiayaan Pendidikan Boleh Ubah (PPBU). Here, we will dissect and compare to two, and give you detailed breakdown as to which will be best suited for you and your needs.

What it is?

PTPTN and PPBU both have different objectives although their job is to provide financial assistance to students - Image via outofthesandbox.com

PTPTN

The PTPTN Education Loan Scheme was established with the purpose of providing educational loans to students studying in Higher Education Institutions locally. These loans will enable students to finance a full or partial tuition fees and living costs during the study period, thus, opening up more opportunities for all students to pursue higher education.

PPBU

PPBU on the other hand, is offered to tertiary level education from Skills Certificate, Diploma, Bachelor’s Degree, Professional, Master’s Degree, and Doctorate (PH.D) to deserving Malaysian. Its aim is to aid the social and economic development of Malaysians by enabling bright but needy students to receive undergraduate education at local Public OR Private Higher Learning Institutions and Training Institutes in the country on a full-time basis.

What are the Minimum Requirements?

The fundamental requirements for PTPTN and PPBU loan applications is that students must be a Malaysian citizen - Image via SELECCIÓN DE LA HUERTA DIGITAL on Flipboard.com

 PTPTN

Many already know PTPTN‘s requirements by now, but for those of you who don’t, here is a gentle reminder:

• You are a Malaysian citizen
• You are aged 45 years and belowYou must already have an offer to study at an institution of higher learning (both public and private institutions, including colleges, universities and polytechnics, are accepted)
• The course that you are pursuing is approved and accredited by MQA
• The remaining period of your study must not be less than one year
• You have no other sponsors
• You must have an SSPN-i savings account before sending in your application

 PPBU

Applicant's Eligibility

• Is open to the poor and underprivileged Malaysians regardless of race, religion & ethnicity.
• Qualified to a FULL-TIME STUDY at local Public OR Private Higher Education Institutions and Training Institute recognized by the Government of Malaysia.
• Only fields of studies which are recognized by the Public Services Department (JPA) / Malaysian Qualifications Agency (MQA) / Malaysian Vocational Training Council (NVTC) / Government Agencies (Malaysia) concerned and acknowledged by the Board of Trustees of YBR.

Specific Requirements

For Doctorate / PHD: 

• NOT less than 18 years old during application and accepting the study offer.
• NOT exceeding 50 years upon graduation for Doctorate & PHD.
• Confirmation of admission from the public OR private University OR Training Centre.
• Applicants must hold a Masters Degree qualification with CGPA of 3.00 and above.
• Duration of study 3 years / 6 Semester.

For Masters Degree:

• NOT less than 18 years old during application and accepting the study offer.
• NOT exceeding 45 years upon graduation for Masters Degree.
• Confirmation of admission from the public OR private University OR Training Centre.
• Applicant must hold a Bachelor's Degree with CGPA of 3.00 and above.
• Duration of study 2 Years / 4 Semester.

For Degree:

• NOT less than 18 years old during application and accepting the study offer.
• NOT exceeding 30 years old upon graduation.
• Confirmation of admission from the public OR private University OR Training Centre.
• Applicant must hold a Diploma with a minimum CGPA of 3.0 or Matriculation with a minimum CGPA of 3.0 or Sijil Tinggi Pelajaran Malaysia (STPM) with a minimum CGPA of 3.0 or Sijil Tinggi Agama Malaysia (STAM) with a Jayyid Jiddan or Mumtaz qualification that is equivalent to STPM.
• Duration of study 4 years / 8 Semester.

For Diploma:

• NOT less than 18 years old during application and accepting the study offer.
• NOT exceeding 30 years old upon graduation.
• Confirmation of admission from the public OR private University OR Training Centre.
• Applicant must have SPM (Sijil Pelajaran Malaysia) qualification with a minimum grade of 5A.
• Duration of study 3 years / 6 Semester.

For Skills Diploma (Diploma Kemahiran):

• NOT less than 18 years old during application and accepting the study offer.
• NOT exceeding 30 years old upon graduation.
• Confirmation of admission from the public OR private University OR Training Centre.
• Should at least have attained OR currently holding level 2 OR – other Skill Certificate need at least a passed in their SPM (with 2 Credits and Bahasa Malaysia subject) OR applicant must obtained Skill Certificate with a minimum of CGPA 2.75 and above.
• Duration of study 3 years. 

For Skills Certificate (Sijil Kemahiran):

• NOT less than 18 years old during application and accepting the study offer.
• NOT exceeding 30 years old upon graduation.
• Confirmation of admission from the public OR private University OR Training Centre.
• Should at least passed in their SPM (with 2 Credits and Bahasa Malaysia subject).
• Duration of study Level 1 to Level 3 (Depends on institutions).

What courses do they cover?

PTPTN covers any field from a specific course but PPBU only has specific fields they can cover - Image via nytimes.com

PTPTN

PTPTN covers many courses, which we have listed down just below. However, if you do have to ask, PTPTN does not cover private pre-university courses such as A-Levels, AUSMAT/SACE, Matriculation and the like. Moving onwards to the good bit (Please note the type of institution they have listed down) :

• Diploma (Full-time): IPTA, Politeknik dan IPTS
• Diploma (Part-time): IPTA, Politeknik dan IPTS*
• Diploma (PJJ): IPTA
• Advanced Diploma: IPTA dan Politeknik
• First Degree (Full-time): IPTA dan IPTS
• First Degree (Part-time): IPTA dan IPTS*
• Masters (Full-time/Part-Time/PJJ): IPTA
• PhD (Full-time/Part-time/PJJ): IPTA
• Professional Courses (Full Time/Part-time/PJJ): IPTA

Education Loans are prioritised for students in UNITEM, UNITAR, Wawasan Open University and Asia E University.

PPBU

Open to all fields of study. except for Medical and Aviation (License) courses.

Priority is given to the following fields of study:

1. Accounting
2. Banking
3. Business Management
4. Human Resources
5. Economy
6. Media Communication
7. Law
8. Actuarial Science

Doctorate PHD, Masters Degree, Professional Studies, Bachelor Degree and Diploma in all fields of study.

Malaysian Skills Certificate (SKM) recognized by National Vocational Training Council (NVTC) and other Skills Certificate is recognized by the related Malaysian Government Agencies.

How much do they sponsor?

PTPTN’s amount given is based on the household income of the applicant while PPBU’s is based on their course of study - Image via pexels.com

Please note that we will talk about the discounts/exemptions for both PTPTN & PPBU later, so don’t worry, we didn’t forget.

PTPTN

PTPTN base their amount given, on which category you fall under, whether it’s A, B or C.

• A (Household income is below RM4,000 and BR1M recipient (name is in BR1M database): Maximum amount
• B (Household income is below RM8,000, but above RM4,000) : 75% of maximum amount
• C (Household income is above RM8,000): 50% of maximum amount

So most of you may know ask, “I understood all that, but what do you mean by maximum amount?” Well, good question keen observer. The maximum amount is dependent in what type of course you study and what type of university you study that in. For example, Student No.1 studying Pharmacy at an IPTS would have a different maximum amount compared to Student No.2 studying Education at an IPTA. Here is the list of the maximum amount based on the course and type of university.

PPBU

PPBU on the other hand gives out maximum amounts based on the level of study you apply for.

• PhD: Up to RM55,800 (3 years) 
• Masters: Maximum of RM 12,000 annually 
• Bachelor’s Degree: Maximum of RM9,500 annually (UiTM & Politeknik only RM6, 500)
• Diploma: Maximum of RM7, 500 annually (UiTM & Politeknik only RM5, 000) 
• Skills Diploma: Up to RM30,000 (3 years)
• Skills Certificate: Maximum of RM30,000 (2 years)

What exemptions are there? Will I have to pay the whole amount back?

If you get a CGPA of 3.75 and above, your loans will be converted into scholarships - Image via rvshare.net

PTPTN

PTPTN waiver will only be eligible for First Class Honour students that come from M40 and B40 families.

PPBU

PPBU has an extensive breakdown of discounts given to those who do well. Below is the list of ranges of CGPA achieved compared to the discount you will receive.

What about the repayment? How do I do that? When do I have to do that?

Students need to pay 6 months after they graduate for PTPTN borrowers but PPBU requires students to submit their academic documents - Image via tuition.io

PTPTN

As far as PTPTN goes, you will need to start making payments 12 months after you graduate, with or without notice from PTPTN. Evidently, many have failed to note the very important statement, with the news of droves of people being blacklisted coming to light in recent times. The time allotted for an individual to complete the repayment depends on the amount borrowed.

• Less than RM10,000: 5 years
• RM10,000-RM22,000: 10 years
• RM22,000-RM50,000: 15 years
• >RM50,000: 20 years

The structure of the repayment schedule is also dependent on your financial ability to repay your loan. In fact, the repayment schedule can be extended up until you're 60 years old but with an interest fee. If you're facing difficulties, visit one of the PTPTN offices and talk to their employees who may help you in settling. 

PPBU

PPBU have a slightly different method. Upon graduation, students are required to submit their full academic transcripts along with a letter to the office of graduation YBR through e-mail or post. Repayment to PPBU is done via two methods, namely either through internet banking (i-rakyat) or in any branch of Bank Rakyat. Postponement of repayment will only be allowed if the student is accepted to pursue their studies at a higher level and for approved reasons which are subject to the discretion of Yayasan Bank Rakyat.

How to apply?

The PTPTN applicants need to follow a few steps below to apply for their loan while PPBU applicants need to apply online - Image via spireoptout.com

PTPTN

To apply to PTPTN, just follow these 5 Simple steps

• Open a SSPN-i account — you can do this at any PTPTN counters, or at Maybank, Bank Islam, BSN, CIMB Bank, Agrobank or Bank Rakyat.
• Open a savings account at a panel bank — you will need to open a savings account with a specific bank based on your choice of institution (IPTS panel banks; IPTA panel banks)
• Buy a PTPTN number from Bank Simpanan Nasional (BSN) — this will cost you RM5, and is valid for 6 months
• Head to PTPTN’s website to apply online: http://www.ptptn.gov.my/gateway
• Complete the application form carefully based on the instructions

PPBU

To apply to PPBU, please click on HERE.

Winner

At the end of the day, the decision is entirely up to you according to what you want and need - Image via pixabay.com

And the winner is ………. you of course! Both the PPBU and PTPTN have its pros and cons. It is really up to the student to think and decide which one is better suited to what they want to achieve. Having two different options though is definitely a win for students all over Malaysia.

When Do I Apply for PTPTN

PTPTN Loan - A Complete Guide

PTPTN Guide 2020

Foundation Programmes in IPTS Eligible for PTPTN Loan

Can You Apply for PTPTN If You’re in a Twinning Programme?

Twinning Programmes and PTPTN

How to Check How Much You Will Receive From PTPTN in Two Steps

PTPTN 2020 Deadlines for Every Course and Every Institution Released

How to Qualify for a PTPTN Loan Repayment Exemption

Deadlines for PTPTN Online Applications at Every UA & IPTS for Every Course

How To Use The New PTPTN Direct Debit System & List Of Associated Banks

8 Questions about Repaying Your PTPTN Loan

How to Check How Much You Owe PTPTN

How Much Loan Does PTPTN offer?