EASYUNI Ultimate University Guide 2013 2014: Issue 2 | Page 55

F INANC ING YOUR STUDY National Higher Education Fund Corporation (PTPTN) The National Higher Education Fund Corporation was established under the National Higher Education Fund Corporation Act 1997 (Act 566) and commenced operations in November 1997. The body was set up as an agency of the Education Ministry of Malaysia with the role of providing and managing education savings schemes and funds for tertiary education. Students may apply for partial of full loans for the pursuit of studies either locally or abroad at both private and public universities. MALAYSIA Skim Prihatin Pendidikan 1Malaysia (SPP1M) Koperasi Jayadiri Malaysia Berhad (KOJADI) Koperasi Jayadiri Malaysia Berhad (KOJADI) was established in 1981 to extend financial aid to its members to pursue tertiary education. The idea to set up the foundation was mooted as a response for many students having to further their studies abroad due to their inability to secure one of the limited number of seats in local universities. KOJADI has a total 12 loan schemes under its loan programme to cater for a wide range of vocational, technical, undergraduate and postgraduate courses. Some of the financial aids include the KOJADI Higher Education Loan Scheme (HELS), KOJADI Education Loan Scheme For Students of Foundation Programmes (S-PUF), JADI Education Loan Scheme for Local University Studies (S-LUS), KOJADI Education Loan Scheme for Foreign University Studies (S-FUS), KOJADI Education Loan Scheme for Overseas Postgraduate Studies (S-OPS) and the KOJADI Education Loan Scheme for Local Postgraduate Studies (S-LPS). SRI LANKA The Skim Prihatin Pendidikan 1Malaysia (SPP1M) serves as an additional financial aid to loans received from other organisations such as PTPTN. The scheme was launched by the Prime Minister YAB Dato’ Sri Najib Tun Haji Abdul Razak in February 2013 and is open to all students pursuing bachelors’ degree and master’s degree courses locally and abroad. The loan amount disbursed are up to RM150,000 for medicine and pharmacy programmes, and RM100,000 for business, law, finance, banking, accounting, engineering, architecture, science and computer science courses. Nenasa Educational Loan – DFCC Vardhana Bank, Sri Lanka This loan scheme for both undergraduate and postgraduate studies provides a loan installment that fits your budget with a repayment period of up to ten years. It also has attractive interest rate options with a choice of fixed or variable interest rates said to be unmatched in the market. It also provides a speedy approval process, has minimal conditions, and is available throughout all DFCC Vardhana Bank branches. Students can apply for this loan individually or jointly with their parents. HNB (Hatton National Bank) - FUTUR+ Higher Educational Loan Scheme The HNB FUTUR+ Higher Educational Loans Scheme supports pursuit of excellence with local and foreign educational institutes or universities. Loans can be applied for in the name of the student or jointly with a co-borrower. Students below 18 years of age following academic studies at local and international schools are eligible for various subjects in the local or international institutions. HNB offers its customers very attractive and competitive, fixed or floating interest rates with the flexibility to best suit your needs. Opt for floating interest rates and your interest payment will be based on the going market rate which is subject to a quarterly review. Before you sign a loan agreement, be aware of the following: Your debt can last for years Student loans can ruin your credit As the repayment instalments are small, paying off a loan in full can take years. Some loans offer a tenure of up to 15 years. However, you can always shorten the length of repayment by increasing the amount paid in each instalment or even pay off the loan in a lump sum if your financial abilities permit you to do so. That may also save you on interest rates. Loan to be repaid regardless of study completion Students often have the misconception that they do not have to repay their loans if they did not complete their studies. The money would have been disbursed to either yourself or the education institution, as such the loaned amount must be repaid even if you have left the university. 52 easyuni Guide 2014 Issue 2 This is, of course, if you have not been servicing your loan. Many organisations have gone to great lengths to recover disbursed financial aid, to the extent of barring loan defaulters from leaving the country. Therefore, if you fail to notify your lender of a delay in repayment, not only will you have a lesser likelihood of securing a loan from banks when you need one but you may also face legal action. However, these consequences should not deter any student from taking a student loan as long as they repay their loans according to schedule.