How to Pay PTPTN with EPF Savings

PTPTN borrowers can now pay their study loans with EPF savings.

Another good news is PTPTN borrowers can either use the savings from their own EPF savings or their parents’ EPF account II.

Yes, you are right.

Nowadays, parents can use their EPF savings in account II to help their children pay off their PTPTN study loan.

In fact, they can choose to use part or all of the amount from EPF account II.

With effective from 1 April 2016, PTPTN borrowers can use e-pengeluaran by login in to i-Akaun to make a withdrawal.

By using e-pengeluaran, this means that the procedure is processed using the online method.

And this new method enables the EPF withdrawal process to be faster and less hassle for all parties involved.

Read more: EPF Self Contribution: Everything you need to know

How to pay PTPTN with EPF savings?

For this purpose, PTPTN borrowers can walk into PTPTN offices to inform that they wish to pay PTPN with their EPF savings.

But, PTPTN borrowers are encouraged to use e-pengeluaran by login in to their EPF i-Akaun.

The step by step as below:

1. Login to i-Akaun, click on Withdrawal tab. Under e-pengeluaran, click New Application and fill in all required details.
2. Check your application status through SMS or messages under Secured Messages inbox.
3. Visit your nearest EPF office to verify your thumbprint. You also need to bring along all the required documents which will be shared in the message.
4. The required documents are based on case-by-case, depending on the type of withdrawal.

Among some of the documents needed are:

• Original NRIC (with photostat copy)
• Original certificate(s) (with photostat copy)
• Original University transcript (with photostat copy)
• Latest EPF statement
• Latest PTPTN statement
• Form from PTPTN

But do take notes that different documents required will be needed based on different applicants.

So, always refer to the message or SMS.

Once the application is approved by the EPF team, the fund will be directly transferred to pay off your PTPTN study loan.

Read more: PTPTN Repayment: How to check PTPTN Pin number or nombor pinjaman

Benefits of paying PTPTN with EPF Savings

The benefits of using EPF saving to pay off PTPTN study loan are as below:

1. PTPTN borrowers can use their own or their parents EPF savings (terms & conditions apply)
2. No limit on withdrawal
3. Multiple withdrawal allowed (as long as there’s still balance in EPF account II)
4. No withdrawal charge imposed
5. Able to reduce study loan and subsequently reduce the interest charged
6. Able to reduce the study loan payment period

From my point of view, PTPTN borrowers should try their best to pay with their own money and not from their EPF savings.

Mainly because EPF saving is for our retirement.

Choosing to use EPF savings to pay for the study loans should be the last resort to settle the PTPTN study loans.

In case, you have enquiries, you can call the EPF call centre at 03 8922 6000 (Monday to Friday, 8 am to 6 pm, except public holidays).

Lastly, I hope the sharing above is able to help those who plan to do so.

photo credit: CreditDebitPro Student Loan Key via photopin(license)