PTPTN (Perbadanan Tabung Pengajian Tinggi Nasional) is a government loan to all Malaysian that wish to forward tertiary education.  I had loan RM21k from PTPTN with RM3500 each semester. Honestly, PTPTN ease my life a lot  during uni times although the loan for each semester is just BARELY enough. I have to bare with KL entertainment lifestyle. I’m not going into detail how you spend the money.

Recently, I had checked the PTPTN website to get some information of repayment. Sadly, the admin fee aka interest charge stated is still 3%. Isn’t the admin fee had adjusted to 1% start from January 2009 which postpone from June 2008 already? ..!..

There are two types of PTPTN repayment method, either paying progressively or paying averagely.

If paying progressive, you pay less initially but gradually increase by 30% in the first 5 years. Taking mine as example, RM21000 loan payback in 120 months with 3% interest. I pay RM75.81 every months in the first year and increase 30% each years.  On the sixth year, I start pay RM281.49 every months till finish settle the debt.

If I choose to pay averagely, I pay the same amount every months in these 120 months.  If you have same duration of paying back , you will have higher admin fees paid in the end if you choose to pay progressive.

My 2 Cents

I will paying back PTPTN loans  ALAP (as long as possible). I choose to pay 120 months (10 years). Some might say the interest rate is so high, will get you killed. Is 3% really that high? If not mistaken, if you get a private loan, the interest will charge you double or even triple. So 3% is consider just nice and the government announce will be reduce to 1%. You can do many more meaningful things with the excess money, such as investment. Just as Rich Dad taught, we need to pay ourselves first before paying others.

Another reason for me to pay ALAP is I calculate in the inflation factor also. After 10 years, including inflation, you actually pay less then the amount you borrow today. Our money devalue because of inflation. Now, you can buy a second hand car with RM21k. 10 years later, you might just buy a motorcycle with RM21k.

I choose to pay progressively because fresh graduate like me still not stable with my salary. I might change job during the first two years or maybe unemployed or low salary. So I choose to pay the minimum first.

Wow, its such a long post. Not my style. Well, I summarize up what I had found.

• The admin fee aka interest will reduce to 1% start from January 2009 but haven’t implement it yet
• Two method of paying back, progressively or averagely
• Paying back as long as possible is better than as soon as possible
• With the excess money, you can do investment with interest return as low as 4% is enough to cover your charge interest and yet you are earning 1 percent return too
• Pay progressively as you are uncertain with your career

PTPTN (Perbadanan Tabung Pengajian Tinggi Nasional) repayment is the job of every graduated student who had loaned from government. Initially, I felt like unwilling  to clear the debt as I haven’t find my job. Plus, I hate the government body working style, sambil lewa.  Ever think of not to pay the loan. Seriously. XD. However, heard that  government is taking action to prohibit those who didn’t pay back the loan to travel oversea. Hmmm… seems like this step is quite effective, at least to me.

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