Career & Education | Life | Personal Finance | Personal Stories | Article

Here’s How I Graduated Without Student Debt

by Ooi May Sim | 15 Jan 2025

The rising cost of tertiary education can feel overwhelming, with courses ranging from a few hundred to well over a hundred thousand Ringgit. To manage these expenses, many students rely on their families or are forced to take on part-time jobs to fund their studies.

But what if there was another way to pursue higher education without the financial strain?

Well, there is! Nur Adilah Zainuddin shares how she took advantage of a government initiative to study at a local university, completely free of charge! 

Laying the foundation 

After completing her Form 5 SPM examinations, Nur Adilah took time to align her personal interests and strengths with potential career opportunities. She dedicated herself to extensive research and sought guidance from career counsellors and alumni from her chosen university.  

“These conversations helped me get a clearer picture of what my career paths could look like and what specific qualifications or skills were needed,” she explains. After careful consideration, she chose to pursue a degree in Economics (Natural Resources).  

To finance her education, Nur Adilah, who is the youngest of five siblings, decided to take a Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) loan as she wanted to reduce the financial burden on her parents.  

“As my family was not in a position to fully finance my higher education, the PTPTN loan was an ideal solution that allowed me to pursue my studies without putting too much strain on my parents’ finances,” says the 25-year-old.  

She adds that the PTPTN loan was the best option available at the time, offering a relatively low-interest rate and flexible repayment terms compared to private loans. 

Essentially, all PTPTN loans carry a flat interest rate of 1% annually, which is used to cover administrative and management costs. The low interest rate aims to make repayment manageable, as the government wants to encourage people to pursue higher education and timely loan repayment.

For example, if you take a RM30,000 PTPTN loan and opt for a 15-year repayment period, you will have to pay RM179.50 monthly, and the total interest accrued throughout your loan tenure will be RM2,307.90. However, if you choose to repay your loan within 10 years, the total interest drops to RM1,530.40, with monthly repayments being RM262.80. Additionally, loan repayment only begins after you’ve graduated and started working.

“The fact that repayments start only after I graduated made the loan a practical choice, allowing me to focus on my studies without the pressure of immediate financial obligations,” Nur Adilah reflects.

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Navigating the loan application 

Once Nur Adilah had decided on her course of study and how to finance it, she found the PTPTN loan application process very straightforward.  

“I visited the PTPTN counter in person to submit my application. The staff there were extremely helpful, walking me through the entire process and explaining the necessary documentation.  

“They made sure I understood how the loan system worked, the repayment terms, and the different incentives available, including the Loan Repayment Exemption Incentive,” she recalls. 

She also notes that the PTPTN staff were diligent in ensuring that all her documents were in order, to avoid any unnecessary delays in the processing of her loan. 

In the end, Nur Adilah was awarded a total of RM22,000 to fund her education. This amount was sufficient to cover her entire course fees for the next three and a half years, as well as books and living expenses for the duration of her course.  

“The amount given was determined by PTPTN based on my father’s income, which is part of their assessment process to ensure that loans are provided in a fair and manageable way, (depending on) each student’s financial situation,” she explains. 

For Nur Adilah, the loan proved to be a lifesaver as it allowed her to focus on her studies without having to worry about paying out-of-pocket for everything. 

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Graduating with no debt 

The ultimate reward came when Nur Adilah was granted a full exemption from her PTPTN loan thanks to her outstanding academic performance. 

After learning about the Loan Repayment Exemption Incentive from the PTPTN officers (upon her loan application), which is awarded to students who graduate with a First Class Bachelor’s Degree, Nur Adilah was determined to achieve top scores. Throughout her studies, she worked tirelessly to maintain exceptional grades. 

Her hard work paid off! 

Upon graduating, all she had to do was to submit her results to apply for the incentive. She was granted a full exemption, meaning she wouldn’t have to repay a cent. 

Getting the exemption was a huge relief for Nur Adilah as it significantly reduced the pressure she might have faced once she started working. “The exemption alleviated any immediate financial stress related to loan repayments after graduation,” she says.

However, she was quick to point out that, had she not gotten the exemption, she would have created a detailed financial plan to ensure manageable monthly loan repayments.  

Looking back, Nur Adilah firmly believes that securing the loan and pursuing her degree were pivotal in enhancing her career prospects. “The (degree) gave me the qualifications and skills needed to pursue a fulfilling career,” she explains. 

For those seeking financial assistance for their studies, Nur Adilah recommends careful financial planning to ensure you can meet repayment terms. And be sure to explore all available exemptions and incentives, as they can significantly reduce your financial burden after graduation, she adds.