Furthering your education in Malaysia is a distant dream for many students. One barrier standing in the way is always the cost. For students pursuing the Postgraduate Diploma in Education (DPLI), education loans are one way to help fund the education fees, living costs and more. In this article, we’ll discuss the financing options available to DPLI students in, loans for DPLI, scholarships for DPLI and requirements and application processes you need to follow.
Main Financing Options for DPLI Students
DPLI students have a range of financing options to consider in order to cover their costs. Below are some of the main options they can consider:
Scholarships & Grants from State Foundations
Scholarships are the most attractive mode of financing because they do not need to be repaid. In Malaysia, permanent funds set up by state foundations provide scholarships to students of DPLI. Scholarships are granted to students who qualify on academic grounds, and there will usually be an interview as well as a check on academic performance.
For instance, the Selangor State Foundation provides scholarships of up to RM10,000 a year for qualifying students. These scholarships present fantastic opportunities for prospective students who cannot afford the cost of education. There are also Government grants which DPLI students can apply for to assist in paying for tuition fees and other costs.
Education Loans from Bank Islam
Apart from scholarships for DPLI, you may consider getting a loan for DPLI from Islamic banks such as Bank Islam or CIMB Islamic. There are no interests (riba) involved due to Sharia compliant principles. Bank Islam offers good profit rates around 4.5 % per year which is pretty low too compared to regular loans.
Education loans from Islamic institutions offer students the option to repay in installments while studying or after they have graduated. This seems a viable alternative to students who are deterred by the exorbitant rates of high interest.
DPLI - eligibility and criteria for applying for a loan
Every financing option comes with requirements. Check out some criteria to consider before applying for a DPLI loan.
Application Process and Required Documents
For personal loans from banks, students must provide documents such as salary slips, bank statements and identification cards. If they choose to avail the money from the Employees Provident fund (EPF) withdrawal, students must ensure that there’s enough money therein.
Scholarships for DPLI - Students have to prepare documents such as academic transcripts and an offer letter from the university. They might have to appear for an interview to assess their eligibility based on their academic performance and ability for availing the scholarships offered.
Interest rates and repayment terms for loans in DPLI
Before applying for a loan in DPLI, knowing the interest rates are important. There are different kinds of loans with varying rates of interest.
- Personal Loans from Banks: The interest is usually in the range of 4% to 7% a sum of money borrowed, depending on the bank and which type of loan you select. For example, you borrow RM10,000 at 5% per year and you would have to pay it back within 5 and 10 years with interest.
- EPF Withdrawal: If a student chooses to withdraw from their EPF, no interest is charged since this is money that the student has already saved themselves.
Repayment Schedule
Education loans (DPLI) are to be repaid immediately if they are taken from a bank. For example, if you take a loan of RM10,000 at 5% interest per year for 5 years, you will have to repay around RM188 per month. Or if you are using the EPF withdrawal scheme, no repayment is required.
Loan Balance Check
Loan Balance Checking Students can use the bank’s loan portal or mobile apps for personal loan accessibility to check their loan balance online. If they want to check their savings balance for those using EPF, they should download the i-Akaun app(s) or visit the EPF portal.
The Risks and the Benefits of Personal Loans to DPLI Students
Every kind of loan comes with risks as well as benefits. Personal loans to DPLI students come with benefits but should also be carefully evaluated for the risks.
Benefits of Personal Loans for DPLI
- Flexibility: Personal loans give students the flexibility to utilize money as they see fit. Funds can be used for tuition fees, living expenses or whatever else students choose.
- Long Repayment Period: Pupils can select a repayment period that is convenient for them. Typically between 5 and 10 years.
Risks of a personal loan
- High Interest Rates: If students default on the loan, they face penalties and legal action from the bank.
- High Debt Burden: Students need to ensure that they have a steady income after graduation to be able to repay the loan.
Example: If a student takes RM15,000 at 6% interest per annum, it will be necessary for them to repay that loan, plus interest, before long, even if that means going to court and having their property seized.
Conclusion
One step towards making DPLI more accessible to students is obtaining a loan to help pay for it. Make sure you know about all the different forms of financing available for students, like scholarships for DPLI, bank education loans and EPF withdrawals. Make sure you qualify and understand the interest rates and repayment.
As an added option, students can also look at Amanahkredit, which gives micro loans to cover either study related costs or emergency expenses. With the right planning and choice of financing, studying taking full advantage of the opportunities offered in this regard is much easier and safer.
With all these choices available, you must make the decision wisely so that your DPLI education is useful and pays dividends in the future.
FAQ
What is a loan for DPLI?
A loan for DPLI is financial assistance for students in Malaysia undertaking the Postgraduate Diploma in Education programme.
Is PTPTN loan available for DPLI?
No. PTPTN loan not available for DPLI students. DPLI students have to find another way of financing such as personal loan from banks or scholarships from state foundations.
Can I use EPF withdrawal for DPLI?
Yes, students can make EPF withdrawals to cover DPLI education costs, but they need to have sufficient savings in their EPF account.