8 Questions about Repaying Your PTPTN Loan

Afterschool

May 6, 2020

Receiving money feels great, but all loans need to be paid back eventually.

Image via US DOE

Here are things you need to know about repaying PTPTN for the study opportunity:

1. When should I start paying back the loan?

Image via John Walker - Flickr

Do start paying off the instalments for the PTPTN loan 12 months after your graduation date.

Especially for the recipients who accepted the ujrah conversion, your repayment period will be set in accordance to your loan balance.

You will be paying for the total amount disbursed by PTPTN, including other costs such as fees, insurance coverage, Duty Stamp and miscellaneous payments as stated in the Letter of Offer.

2. What if I need more time to pay back the loan?

Image via Pixabay

You may request to postpone paying back your PTPTN loan if you fall under one of these categories:

You have completed prior study and resumed full time study at a higher level. You will be eligible to a deferment period for the duration of the new course of study.
You are attending a twinning program studies on a 2+1 or 2+2 basis which requires you to continue your studies overseas.
You have extended your study period. You will be eligible to a deferment period for the duration of the period of extension permitted by the IPT.
You have completed your studies and is out of work. The maximum period allowed is 24 months from the date of your first repayment.
You have received other sponsorships. The deferment can only be considered after you have fully settled the overlapping amount. You will be eligible to a deferment period for the duration of your study.
You are currently facing legal action against yourself. Deferment only can be considered once the legal cost has been settled.

Recipients who are not included in the above categories, will not be considered for deferment.

A fee will be imposed for the duration of the deferment; the period of postponement will be determined by PTPTN and will only be considered after Ujrah conversion.

3. How do I apply for the payment deferment?

Image via Blue Diamond Gallery

You can get the official letter or deferment application form which may be obtained through the PTPTN official portal or here.

The required documents are as follows:

(i) The recent letter of offer from a tertiary institution stating the actual completion date of study; or

(ii) Letter of unemployment verified by an authorized Officer as determined by PTPTN or surat akuan tidak bekerja

(ii) Recent EPF statement; or verification Letter from EPF confirming the recipient has yet to make any contributions.

Note :

a) The required documents for recipient who are still studying are items (i).

b) The required documents for recipient who are still out of work are items (ii) until (iii).

4. Can I choose not to pay back my PTPTN loan?

Image via Images Money - Flickr

YES but only if you complete your Degree with First Class Honours and your family household income is in the B40 or M40 group. This mean you will be exempted from paying back your PTPTN loan, which means you essentially received a full scholarship!

Do note however that First Class Honours may differ from university to university, so make sure you check with your counsellors so that you know what to aim for. Generally, however, First Class Honours typically requires you to have at least CGPA of 3.67/4.00, or higher.

5. What is the interest rate?

Image via Creative Common Images

The interest rate is 1.00% per annum and is in effect following the 6 month grace period immediately after graduation. However, those who settle the loan in full prior to this 6 month grace period will not be charged any administrative cost.

6. What happens if I fail to repay my loan?

Image via Blue Diamond Gallery

PTPTN applies penalties to borrowers who fail to repay their loan on time.

Delinquent borrowers will be given up to 3 reminders and afterwards PTPTN will blacklist these delinquent borrowers. The blacklisted people will be prohibited from going abroad, and not be permitted to renew your passport.

7. What will happen if I discontinue or cancel my PTPTN loan?

Image via Pixabay

Borrowers who have failed, discontinued, changed course or obtained other sponsors have to pay off the lump-sum amount of their loan. Installment method will not be offered for this kind of case.