How well do students spend their PTPTN loans?

Published at 12:08 AM in Commentary

By YEOH AI TEE

Set up by the Malaysia government, the Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) loan is to provide education loans to students in order to pursue their studies. The education loan will enable students to fully or partially pay their fees and their subsistence throughout the duration of their studies. However, students do not really plan their spending well.

Lim Wan Tatt, 25, bank officer of Public Bank said, “Students mostly use their PTPTN loan on daily expenses and purchases of reading material like reference books or textbooks. They have to plan their loans for investment purpose such as low risk investment-unit trust or save the money in fixed deposit.”

He added that students might over spend the loan because some of them spend their money on digital devices like laptops.

Cherl Yoh, 24, financial officer of YCH Logistics (M) Sdn Bhd is also concerned on students who cannot afford to pay their PTPTN loans after graduation.

She said that borrowers have bad reputations because of the unpaid PTPTN loans although no tight policies are imposed against borrowers.

So, how should students manage their PTPTN loans?

DO NOT:

1) Students should not overspend their education loans on non-courses materials such as clothes. As we know, students nowadays spent their money mostly on their appearance. They like branded items and spend their money on luxury goods such as shoes, bags and many more.

2) Besides over-concern on appearance, student also spent too much on food. They are more likely to enter high-class restaurants, which serve meals that cost around RM10. A quickly calculation will show that it is not a small amount of money day after day.

3) PTPTN loan is provided to student for their studies. Some of the students even allocate their PTPTN loans to buy a car. To buy a car, more than RM5000 is needed to pay for a deposit. With these, students are then unable to pay the course fee because of overspending.

DO:

1) Student should come up with proper financial planning for the duration of their studies. A proper budget must be planned, which includes course materials (reference books, stationeries and tools), laptop and Internet service charges, living and transportation fees and other miscellaneous charges that are related and relevant to their studies.

2) Moreover, student should bear in mind that their aim is to study and to think twice before spending. Thus, a suggestion for students to save money is making their own meal instead of eating outside. It is a best way to save money.

3) On the order hand, students are also encouraged to invest their money to gains profit. They can gain profit by investing the loans of every semester.

4) Car-pooling is encouraged for students. Besides that, student can also go to campus by choosing the university’s bus. Other suggestions would be cycling or walking to campus.

5) Self-control is needed for students to spend their education loans smartly. Students must ensure that their PTPTN loan is to be used to pay the course fees for every semester. Because they might over spend their education loans and no afford to pay for courses at the end.

6) Part time is applicable for student to earn extra pocket money. Beside PTPTN loans, student can work part time during leisure time. Its helps to gain money instead of only depending on the PTPTN loans.