After
5years servicing my 1st ever loan – My education loan, PTPTN I managed
to settle my debt with the aid from my mum. Finally, it comes to the end.
Thanks to the
government initiative for waiver of 20% for those who are willing to settle
their loan one-off under Budget 2015, my mum has offered me zero-interest
installments to settle the my outstanding
balance and enjoy the 20% discount.
Although
the policy has raised a big debate, but undeniable it is welcome amongst the
graduates who has the capabilities to settle their debts and being rewarded for
their willingness to honor their obligations. Well, it seems like not everyone
else were as lucky as me, having a mum who are willing (or should said having
the capacity) to help their children and reduce the youngsters’ burden. Some
might even questioning those who are able to paid one off why at 1st
place was granted the loan? I can’t answer for others, but in my case my mum
was retired from her job and received pension from government.
Well, the world wasn’t always fair, so just take
it and move on. (I always feel unfair too why I am still a banker who earns
little, but face it ok? Work harder rather than mumbling there.)
So, what
has the 20% discount mean to me? Here are some illustrations:
|
|
Debit
|
Credit
|
Amount
|
|
I borrowed for my 3years degree
course in IPTA.
|
RM19,500-00
|
|
RM19,500-00
|
|
Being charged 3% interest as I do
not change to 1% flat ujrah (Repayable over 120months instalment in gradual
term)
|
RM 3,821-38
|
|
RM23,321-38
|
|
Total amount inclusive interest
|
|
|
RM23,321-38
|
|
|
|
|
RM19,500-00
|
|
Actual interest charged to-date
|
RM2,126-52
|
|
RM21,626-52
|
|
Actual amount paid to-date
|
|
RM7,814-80
|
RM13,811-72
|
|
20% Discount
|
|
RM2,726.34
|
RM11,049-38
|
|
Insurance coverage
|
-RM113-36
|
|
RM10,936-22
|
|
|
Interest
|
Payment
|
Principal
|
|
|
|
|
RM19,500-00
|
|
FY2010
|
RM 48-75
|
|
RM19,548-75
|
|
FY2011
|
RM579-63
|
RM1,044-80
|
RM19,083-58
|
|
FY2012
|
RM558-37
|
RM1,400-00
|
RM18,241-95
|
|
FY2013
|
RM521-57
|
RM2,400-00
|
RM16,363-52
|
|
FY2014
|
RM418-20
|
RM2,970-00
|
RM13,811-72
|
|
Total
|
RM2,126-52
|
RM7,814-80
|
|
As you
have seen from the table above, I should have paid RM23K over the 10years
period and I have paid until to-date for
5years, with total settlement of RM18,751-02 (Paid RM7,814-80+ Final settlement
of RM10,936-22). Thus, a cost savings of RM4,750-36 in calculation. However, I have
made more payment than the schedule payment, thus, I believe the actual payment
will be less than RM23K should I continue the payment until the last payment.
That, was only a theoretical illustration.
In fact, for
the amount I have borrowed RM19,500-00 plus interest charged up-to date
RM2,126-52, total RM21,626-52. I have paid RM18,751-02 to settled,
Cost
Saving = RM21,626.52 – RM18,751.02
= RM2,875.50 (13.3%)
For the
real saving I received from the 20% discount was solely 13.3%. Despite that,
excluded the interest, the PTPTN has only lose RM748-98 of principal. If
accounted for discounted cashflow, I believe the government has merely undertaken
minimal losses only.
Of course,
during FY2014 I entitled for another 10% additional discount (RM220) for
monthly installments I have paid on-time. Thus, I actually does enjoy higher
cost savings.
It’s fine
for me being rewarded for being a good paymaster (because I am, haha!!).
Everything
does has a cost, what we have borrowed we should honor and settled it. We have
enjoyed the benefits; it’s time to pay back for the sake of next generation.
Just pay
accordingly to your ability instead of letting the interest roll and roll. As you have seen from the illustration, the
interest charges might as high as RM500+ a year.
For those
who arguing they should not charge interest for the education loan, change your
mindset and put it as administration charges, it would be less uncomfortable
for you.
Or, pay on
time monthly, and enjoy the 10% discount, it’s almost reducing your interest in
half.
Don’t ever
think that someone who are able to pay installments for Car loans, Housing
Loans or even using a credit card and enjoying ZPP to buy electronics gadgets or
facial packages are unable to service their obligations. They can but they are just
unwilling. Of course there will be argument whereby the car is meant for them
to travel for working purpose. There are always excuses to cover their back.
So, no point arguing for this.
Of course,
there are some friends who are waiting rewards/dreaming presents from sky drop
ie cancellation/waiver for PTPTN repayment. Free education at the cost of
billions from taxpayer wasn’t a wise decision. Are you willing to pay a higher
tax when you are one of the taxpayer (Definitely not for me, I m currently
paying PCB RM30 per month and feeling imbalance already!!)?
You will
definitely feel the sweetness from your hardship if you work hard enough during
your university time and graduate as first class degree holder. Then, you will
get waiver…
If you are
not, pay the cost and you will appreciate it more.
Every comment here is just my personal view. No heart feelings...
