For many children in the far east region, higher education is the most effective ticket out of poverty. But costs of higher education are as expensive as anywhere else. When low income parents find out their children have been accepted into University, oftentimes the excitement turns to stress as they begin to worry about where to get the funding from.
Fortunately, the government of Malaysia has set up the ‘Perbadanan Tabung Pendidikan Tinggi Nasional’ (PTPTN). It’s a loan for college that is based on income. There is no mention of credit score being a factor.
When students are accepted into schools, they only need to submit proof of acceptance with their application. It’s expected that most who apply will be approved.
In a unique approach to educational loans, some students will find themselves not needing to pay back this advance at all. If a student excels academically, there is a possibility of the loan turning into a scholarship. This provides an extra incentive to do well once granted the money.